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C h a p

Chapter 3
Compliance Audit
Para
Number
Topics
Page
3.1
Implementation of Total Sanitation Campaign
in Odisha
49-63
3.2
Functioning of Rural Piped Water Supply
Schemes in the State
64-75
3.3
Distribution of Superior Kerosene Oil under
Public Distribution System
75-84
3.4
Security related expenditure
84-92
3.5
Assessment and realisation of cost of
deployment of police personnel in other than
Government organisation
92-95
3.6
Sale and disposal of river sand
95-103
3.7
Payment of dues/ fees in replacement of
original challans
103-105
3.8
Procurement and distribution of dual desks
105-107
Chapter 3 Compliance Audit
CHAPTER 3
Compliance audit
RURAL DEVELOPMENT DEPARTMENT
3.1
Implementation of Total Sanitation Campaign (TSC) in Odisha
3.1.1 Introduction
Total Sanitation Campaign (TSC), a flagship programme of Government of India
(GoI), was launched in 1999-2000 in the country with the objective to accelerate
sanitation coverage in rural areas for access to toilets to all by 2012.
Activities for implementation of TSC, inter alia, include preliminary survey to
assess status of sanitation and hygiene practices, peoples’ attitude for improved
sanitation and motivation through IEC to create demand for sanitary facilities in
rural areas for households, schools, anganawadi centres (AWC) and community
sanitary complexes.
This programme was implemented in three districts1 of the State by the Rural
Development (RD) Department in 2000-01 which was subsequently extended to
all 30 districts in a phased manner through constitution of Odisha State Water and
Sanitation Mission (OSWSM) as nodal agency. Government of Odisha
formulated (February 2008) Operational guidelines in line with TSC guidelines
issued by GoI for effective implementation of the programme.
3.1.1.1 Organisational set up
OSWSM, headed by Chief Secretary as Chairman and the Principal Secretary of
the RD Department as its Member Secretary at the State level, was formed
(August 2002) to oversee the implementation of TSC in the State. Routine
activities are looked after by the Chief Engineer (III), Rural Water Supply and
Sanitation (RWS&S) as the Additional Member Secretary of OSWSM.
To oversee and co-ordinate implementation of TSC at the district level, the
District Water and Sanitation Mission (DWSM) formed for each district is headed
by the President, Zilla Parishad as the Chairperson, the Collector & Chief
Executive Officer, Zilla Parishad as Co-Chairperson and the Executive Engineer,
RWS&S as the Member Secretary.
At Block level, Block Development Officer (BDO) is to co-ordinate
implementation of TSC as CEO of Block Health Water and Sanitation Committee
(BHWSC) and at the Gram Panchayat (GP)/ village level, TSC is being
implemented under the leadership of Sarpanch with necessary support from NonGovernment Organisations (NGOs)/ Community Based Organisations (CBOs)/
Self Help Groups (SHGs) and other stakeholders.
1
Balasore, Ganjam and Sundargarh
49
Audit Report (G & SS) for the year ended March 2013
3.1.1.2 Scope and methodology of Audit
Audit was conducted to assess whether the institutional arrangements and
capacity building activities, implementation of TSC, fund management and
monitoring mechanism were adequate and effective. Audit was conducted during
November 2012 to May 2013 covering the period 2009-12. Entry Conference was
held with the Joint Secretary, RD Department on 07 March 2013 in which audit
objectives, criteria, scope and methodology were discussed. Audit findings were
also discussed with the Additional Secretary, RD Department in an Exit
Conference held on 18 December 2013. Seven2 out of 30 DWSMs were selected
for Audit by stratified random sampling method. Records of the Chief Engineer
(RWS&S), OSWSM and RD Department were also test checked in Audit.
Inspections of sites and beneficiary interviews were conducted in the presence of
representatives of audited entities.
Audit Findings
3.1.2
Institutional arrangement and capacity building
3.1.2.1 Block Resources Centres
For successful implementation of TSC and National Rural Drinking Water
Programme (NRDWP), GoI issued (August 2010) guidelines for setting up of
Block Resource Centre (BRC) before 31 March 2011. As per guidelines the BRCs
were required to have one Block Coordinator (BC) and one Cluster Coordinator
(CC) to provide guidance, support and capacity building to Village Water and
Sanitation Committee (VWSC) with a view to monitor the implementation of
Rural Drinking Water Supply and Sanitation Programme.
Audit noticed that as of September 2013, RD Department set up only 58 (18 per
cent) BRCs against requirement of 314 BRCs in the State. Further, six districts3
had no BRCs as of September 2013. Due to non setting up of BRCs, there was no
scope for continuous awareness generation and motivation in GPs and villages for
effective implementation of TSC programme.
Department stated (January 2014) that initiatives had been taken for setting up of
BRCs in all the blocks.
3.1.2.2 Ineffective functioning of Water Supply and Sanitation Support
Organisation for capacity building
A Communication and Capacity Development Unit (CCDU) was set up
(December 2005) under OSWSM to promote development of State specific IEC
strategy, facilitate implementation of IEC plan at State and district level and
provide capacity development of functionaries and stakeholders at all levels. In
2
3
Balasore, Bargarh, Kalahandi, Kendrapara, Khordha, Phulbani and Rayagada.
Gajapati, Jharsguda, Khordha, Nayagada, Puri and Rayagada.
50
Chapter 3 Compliance Audit
March 2010, Water Supply and Sanitation Support Organisation (WSSO) was set
up under OSWSM to deal with IEC activities under CCDU, human resources
development issues etc. for implementation of NRDWP and TSC. Projects
undertaken by WSSO were to be approved by State Level Scheme Sanctioning
Committee (SLSSC) headed by Principal Secretary to GoO, RD Department.
Audit noticed that CCDU or WSSO did not undertake adequate number of IEC
activities for successful implementation of TSC during 2009-12. As regards HRD
activities, against 1427 programmes approved by SLSSC during 2009-12, WSSO
organised only 331 (23 per cent) programmes including 91 training programmes
for self employed mechanics and 223 for Sanjog partners4 (five stakeholder
Departments). Inadequate activities for development of capacity building led
WSSO to utilise ` 13.94 crore (44 per cent) only against ` 31.47 crore available
for IEC and HRD activities during 2009-12.
Department stated (January 2014) that WSSO was in nascent stage of formation
and the institution was in preparatory phase for developing training infrastructure
at the district and sub-district level, creating resource persons etc which would
enable smooth training of identified resource persons.
3.1.3
Implementation of TSC Project
Strategy for project implementation envisaged a ‘community-led, people centred
and demand-driven approach’ with emphasis on awareness creation and demand
generation for sanitation facilities in houses, schools and for clean environment.
The strategy addresses all sections of rural population to bring about behavioral
changes for improved sanitation and hygienic practices. Audit noticed that
objectives of TSC were not fully achieved, though the project period was over by
March 2012 due to low and irregular utilisation of fund, failure in implementation
of IEC programmes, non use of toilets etc as discussed under:
Fund Management
3.1.3.1 Low utilisation of TSC fund
TSC was implemented with fund sharing ratio of 80:20 for IEC, 70:30 for
institutional toilets between GoI and State Government respectively and 60:20:20
among the GoI, GoO and the beneficiaries respectively for IHHLs, community
sanitary complexes and Solid and Liquid Waste Management (SLWSM). GoI
assistance was to be released to the implementing agency in four installments5
and the State share within a fortnight of release of the GoI share.
Audit noticed that against approved project cost of ` 1423.51 crore (excluding
4
5
Five stakeholder Departments: Health & Family Welfare, Panchayati Raj, Rural Development,
School & Mass Education and Women & Child Development
30 per cent immediately after project approval by the NSSC and the 2nd and 3rd installments
(30 per cent each) to the district implementing agency through the administrative department
and the last installment (10 per cent) after incurring 80 per cent expenditure of available fund.
51
Audit Report (G & SS) for the year ended March 2013
beneficiary contribution: ` 138.54 crore), OSWSM received only 48 per cent
(` 689.46 crore6) from GoI and State Government towards respective share since
inception (2000-01) till November 2012 for implementation of TSC. However,
during 2009-12, ` 321.45 crore was received as share of GoI (` 230.41 crore) and
State Government (` 91.04 crore) as detailed in table below:
Table 3.1: showing funds released by GoI and GoO and expenditure thereof
Year
Opening balance
Funds released
Interest
2009-10
GoI
share
121.91
GoO
share
24.68
GoI
share
50.32
GoO
share
51.48
GoI
share
2.96
GoO
share
0.90
2010-11
130.16
57.28
68.37
20.00
3.83
1.30
Unspent
balance
(`
` in crore)
Total
funds
available
Expenditure
incurred
Percentage
of
expenditure
252.25
64.80
187.45
25.68
280.94
63.93
217.01
22.76
2011-12
159.26
57.75
111.72
19.56
6.05
1.69
356.03
55.90
300.13
15.70
Total
121.91
24.68
230.41
91.04
12.84
3.89
ϰϴϰ͘ϳϳ
184.63
300.13
38
Source: Compiled from information furnished by OSWSM
Out of the available fund of ` 484.77 crore7 during 2009-12, as seen from above,
State had made an expenditure of ` 184.63 crore leaving 62 per cent of the total
available fund unutilised.
Out of the total projects outlay (` 1562.05 crore), 15 per cent (` 234.31 crore)
was to be utilised for IEC activities in the State. But, scrutiny revealed that due to
non release of entire project cost, OSWSM received ` 148.41 crore towards IEC
activities and could utilise only ` 21.48 crore (14.47 per cent) by March 2012. In
test checked districts, DWSMs spent ` 2.34 crore (12 per cent) only out of the
available fund of ` 18.73 crore. Poor utilisation of fund was mainly due to
inadequate IEC activities, weak and ineffective delivery system etc resulting in
tardy implementation of TSC.
Department stated (January 2014) that TSC is a demand driven programme and
needs continuous drive, monitoring for beneficiaries to adapt to safe sanitation
practice. IEC has been intensified across the State by involvement of allied
Sanjog partners.
3.1.3.2 Inadmissible expenditure of ` 10.80 lakh under TSC
TSC Guidelines of GoI prescribed construction of toilets for individual Below
Poverty Line (BPL) households, institutions like schools and anganwadi centres.
Audit noticed that the DWSM, Balasore in violation to above guidelines made an
expenditure of ` 10.808 lakh from IEC fund by constructing 36 toilets in GP
6
7
8
(` 689.46 crore = GoI Share (60 per cent: ` 516.77 crore) plus State Government Share (20
per cent: ` 172.69 crore)
Opening balance: ` 146.59 crore (Central: ` 121.91crore and State: ` 24.68 crore), Central
Share: ` 230.41 crore, State share: ` 91.04 crore and interest ` 16.73 crore (Central: ` 12.84
crore, State: ` 3.89 crore)
` 7.20 lakh (cost of 36 toilets in GP) and ` 3.60 lakh (cost of two sanitary complexes in police
stations)
52
Chapter 3 Compliance Audit
offices and two sanitary complexes in police stations (Kamarda and Khaira)
during 2009-12.
Department stated (January 2014) that sanitation demonstration unit had been
constructed in various public places where large number of rural people visit and
may use these facilities which would ensure maintaining sanitation of the office as
well as convincing the people about benefits of adopting sanitation infrastructure.
However, as per guidelines, people are to be made aware of sanitation and
hygienic practices under the GPs through IEC activities and not by constructing
demo toilets.
3.1.3.3 Irregular purchase of material of ` 43.80 lakh
TSC guidelines stipulate construction of toilets by beneficiaries themselves with
technical assistance by procuring required hardware materials according to their
need, choice and affordability. Financial incentive was to be given after the latrine
was constructed and put to use by the beneficiary. But, in Kalahandi district, the
DWSM in lieu of providing financial incentive, procured hardware materials
worth ` 43.80 lakh during 2009-11 for construction of toilets. Further, materials
worth ` six lakh were lying idle without being utilised as of May 2013. With
transformation of TSC to Nirmal Bharat Abhiyan (NBA) from April 2012, the
responsibility for construction of toilets rested with the Blocks and the scope of
utilisation of the above material remained remote after lapse of two years of
procurement.
Department stated (January 2014) that procured materials would be handed over
to BDO office to be delivered to households as per requirement.
3.1.3.4 Rural Sanitary Marts (RSMs) and Production Centres (PCs)
As per TSC guidelines, DWSMs could provide a revolving fund of ` 3.5 lakh for
opening a Rural Sanitary Mart (RSM) or Production Centre (PC) outlet by NGOs/
SHGs/ women organisations/ GPs etc. The aim of having a RSM was to provide
materials, services and guidance needed for constructing different types of latrines
and other sanitary facilities which were technologically and financially suitable to
the area and the PC was to improve production of cost effective sanitary
materials. The revolving fund so paid to the NGOs/ SHGs/ GPs etc, should be
refunded to DWSMs after the RSM/ PC attained a level of sustainability. DWSMs
should evolve a system of joint monitoring to ensure that the RSMs/ PCs were on
track with the production plan and production targets to local requirements.
Scrutiny of DWSM records revealed the following:
•
DWSM, Kalahandi advanced ` 25 lakh as revolving fund to 50 NGOs
between August 2005 and February 2006 for setting up of 50 RSMs/ PCs in
the district. Out of the above amount, only ` 3.44 lakh was recovered from
NGOs leaving the balance amount of ` 21.56 lakh unrecovered (May 2012)
even after seven years of payment. Presently the NGOs were defunct or nonoperational.
53
Audit Report (G & SS) for the year ended March 2013
•
DWSM, Kandhamal paid ` 11 lakh from the revolving fund to 13 NGOs and
SHGs between December 2005 and May 2007 for setting up RSM/ PCs.
Though more than six years had already elapsed, ` 3.19 lakh only was
recovered leaving ` 7.81 lakh outstanding (June 2013).
•
DWSM, Rayagada paid ` 3.55 lakh between March 2004 and August 2006 to
six NGOs/ SHGs/ Cooperative societies. Out of the above advance, ` 2.45
lakh only was recovered leaving a balance amount of ` 1.10 lakh outstanding
(May 2013).
Due to lack of adequate monitoring and IEC activities, TSC fund was outstanding.
Department stated (January 2014) that funds would be recouped from the
agencies and DWSMs had been instructed to initiate legal suits against defaulting
agencies.
3.1.3.5 Non-adjustment of advances
As per Rule 267 of OGFR read with Finance Department Circular (October
2004), advance given to an employee or organisation is required to be adjusted
within three months from the date of advance taken, failing which advance should
be recovered with interest from the concerned employee/ organisation.
Audit noticed from Chartered Accountant’s reports for 2009-12 that DWSMs of
test checked districts paid (April 2005-March 2012) advances amounting to
` 13.18 crore to different officials and organisations which remained unadjusted
as of November 2012. DWSMs did not maintain any register/ ledger to watch
payment, utilisation and their adjustment. In the absence of such details, the agewise advances outstanding were not ascertainable and non-recovery of old
advances could not be ruled out.
Department stated (January 2014) that timeline was issued to recover the
advances from the person/ institution concerned within three months failing which
legal action would be initiated to recover the amount.
3.1.3.6 Non utilisation of fund for Nirmal Gram Puraskar
GoI introduced (October 2003) the award of Nirmal Gram Puraskar (NGP) to GPs
who have contributed significantly towards ensuring full sanitation coverage in
their areas of operation. The award was to be given by the OSWSM in two
installments, the first immediately after selection of GPs and the second after six
months on ensuring continuance of Open Defecation Free (ODF) status.
CE OSWSM, Bhubaneswar received ` 7.84 crore from GoI for disbursement to
243 GPs selected under NGP during 2008-11. Of the above, ` 4.40 crore was
released towards first installment to 213 GPs and second installment to only 32
GPs as award under NGP during 2008-11 resulting in retention of balance ` 3.44
crore without disbursement. This indicated that 30 GPs due to get first installment
54
Chapter 3 Compliance Audit
were not paid as of September 2013. Further, in respect of 211 GPs though due
for second installment were not inspected for ensuring compliance relating to
continuance of ODF status.
Department stated (January 2014) that steps had been initiated to ensure
certificates and activity reports from DWSMs and early release of second
installment to remaining GPs.
3.1.3.7 Extra financial liability for non completion of TSC project
As per operational guidelines, TSC project period was to be completed by March
2012. Out of 6234 GPs in 314 blocks, 100 per cent sanitation coverage under TSC
was achieved in 324 GPs by the time the GP intervention plan was adopted
(February 2008) to cover balance 5910 GPs by March 2012. The plan was to
cover at least five GPs per block during 2008-09, seven GPs in 2009-10, nine in
2010-11 and remaining GPs during 2011-12 so that all the households were
covered by March 2012 including all BPL households to whom financial
incentive of ` 3200 was payable for construction of each latrine.
Scrutiny of records revealed that out of 71.52 lakh toilets approved by GoI during
2001-12 for the project, 44.85 lakh toilets were approved for BPL households. Of
these, OSWSM could cover 26.89 lakh toilets as of March 2012 leading to non
coverage of 17.96 lakh BPL households which ultimately spilled over to another
sanitation programme (Nirmal Bharat Abhiyan) launched from April 2012. But,
the financial incentive under Nirmal Bharat Abhiyan (NBA) was enhanced from `
3200 to ` 4600 for each toilet. Due to failure in achieving GP intervention plan
within the stipulated time line, the Government had to bear an extra financial
burden of ` 1400 for each toilet to meet the enhanced incentive for BPL
households. Reason for failure to achieve the intervention plan was due to
inadequate institutional arrangements and IEC activities.
Department stated (January 2014) that TSC programme primarily aims at
complete behaviour change in the age-old sanitation risk practices as well as
making sustainable access to sanitation. TSC hardware construction would only
be undertaken if the household is ready to adapt to new behaviour. However,
Department failed to utilise 85 per cent of the available fund under IEC activities
to create awareness among the rural people for using toilets instead of open
defecation.
Programme Implementation
3.1.3.8 Shortfall in achievement of target
One of the main objectives of TSC was to accelerate sanitation coverage in rural
areas for access to toilets to all by March 2012. Similarly, in rural areas schools
were to be covered by March 2008 and anganawadis by March 2009 with
sanitation facilities. It was, however, observed that the OSWSM developed a GP-
55
Audit Report (G & SS) for the year ended March 2013
wise focused intervention plan (February 2008) to achieve 100 per cent sanitation
coverage under TSC by March 2012.
Audit further noticed (November 2012) that though GoI fixed a target for
construction of 71.52 lakh toilets in the State during project period 2001-12,
OSWSM could achieve 55 per cent (39.25 lakh) cumulatively as of March 2012.
Year wise achievements against targets during 2009-12 were 31 per cent, 39 per
cent and 34 per cent as given in the table below:
Table 3.2: Target and achievement of construction of toilets 2009-12
2009-10
2010-11
2011-12
Component
Achiev
Achiev
Achiev
Target
Target
Target
Target
ement
ement
ement
IHHL– APL
6.60
2.14
10.31
4.79
4.63
1.37
21.54
IHHL– BPL
9.17
2.62
12.18
4.08
6.02
2.22
27.37
School toilet
0.21
0.14
0.06
0.04
0.03
0.02
0.30
AWC toilet
0.11
0.05
0.06
0.02
0.06
0.03
0.23
4.95
22.61
8.93
10.74
3.64
49.44
Total
16.09
(31 %)
(39%)
(34%)
(figures in lakh)
Total
Achiev Perce
ement ntage
8.30
39
8.92
33
0.20
67
0.10
43
17.52
(35%)
Source: Compiled by Audit from information collected from OSWSM/ DWSMs
It was further evident from 2011 Census data that out of 81.44 lakh rural
households in Odisha, only 14.1 per cent households were having latrines which
included 8.6 per cent households having water closet latrines, 3.4 per cent owned
pit latrines and remaining 2.1 per cent other types. Thus, despite implementation
of TSC in the State since 2001-02, objective of TSC programme of access to
toilets to all in rural areas by March 2012 remained largely unfulfilled as
85.90 per cent of rural households were deprived of latrine facilities. Reasons for
low achievement were ineffective IEC activities, inadequate staffing and absence
of proper planning at district, block and GP level.
Department stated (January 2014) that year-wise physical targets have been fixed
by OSWSM for the DWSMs and the focus has been primarily on behaviour
change rather than physical construction. Besides, there was no financial incentive
for APL families and initial transition in convergence approach of NBA with
MGNREGS has also slowed down.
3.1.3.9 Failure in implementation of GP Intervention plan
As per operational TSC guidelines, the TSC project period was to be completed
by March 2012. Audit noticed that TSC Programme intervention was not made
since inception in 49 GPs in three9 out of seven test checked districts depriving
33256 BPL households of access to toilets.
The Department stated (January 2014) that GPs were approached based on the
readiness of the community for the programme, availability of field motivators,
availability of supply chain for hardware and other conducive and enabling
environment.
9
Balasore (1), Kandhamal (26) and Rayagada (22)
56
Chapter 3 Compliance Audit
3.1.3.10
Information, Education and Communication
Information, Education and Communication (IEC) is an extremely important
component of the programme that should lay the ground for successful
implementation of TSC. IEC has to inform, educate and persuade people to realise
their roles and responsibilities and benefits accruing from adopting right practices.
As per TSC guidelines, OSWSM at the state level and DWSMs at the district
level were responsible for policy, advocacy and strategy formulation and framing
guidelines for IEC activities intended to create demand for sanitary facilities in
the rural areas for households, schools, anganwadis and community sanitary
complexes. Each district should prepare a detailed IEC Annual Action Plan by
February of the preceding financial year with defined strategies to reach all
sections of the community. IEC strategy and plan have to be implemented not just
to emphasise use but also maintenance and upgradation of the asset so created, so
that sanitation and hygiene become an integral part of rural life. Audit scrutiny,
however, revealed that:
•
Annual Action Plan for IEC was not prepared by the DWSMs resulting in
unplanned implementation of IEC activities which could create low demand
for sanitary facilities in rural areas. Joint inspection of DWSMs revealed that
107 out of 344 beneficiaries interviewed stated that they had no knowledge of
IEC activities undertaken in TSC. Though measures such as street play and
folk media could have been explored for creation of awareness, no such
programmes were organised in the four10 test checked districts.
•
A national communication strategy and plan was developed by GoI giving
emphasis on inter-personal communication (IPC) at the grassroots level.
While Member Secretary (MS), Kalahandi did not take any action, others in
Khordha, Bargarh and Kandhamal spent negligible amount of ` 1.50 lakh
only towards IPC activities during 2009-12.
•
Out of 344 households interviewed, 167 were using toilets, 110 households,
though having toilets were not using the same due to reasons discussed in
paragraph 3.1.3.11 and remaining 67 had no toilets of which 42 households
belonged to 13 GPs which were given Nirmal Grama Puraskars.
•
Though 25 households11 were enlisted as beneficiaries and toilets for them
were shown as constructed, households upon enquiry stated that they had
none.
•
The MS, DWSM, Kalahandi released ` 12.28 lakh to the District Information
and Public Relation Officer (DIPRO), Kalahandi for organising IEC activities
which were to be focused on health, hygienic and environmental practices
involving field staff of DWSM, RWS&S etc. Though the IEC action plan was
10
Balasore, Bargarh, Kandhamal and Khordha
Baragarh:5(Village Janged:3 and Sudhapali:2), Kalahandi:4 (Rupra GP:4), Kandhamal:7
(Gulimarapada village:2, Jamujhari village:2 and Sripala village:3), Rayagada:9 (Rekhapadar
GP:6 , Nakiti GP:2 and Kailashpur GP:1)
11
57
Audit Report (G & SS) for the year ended March 2013
jointly prepared by DWSM and DIPRO for a period of three months (January
to March 2011), DIPRO incurred the expenditure and conducted different
activities without involving DWSM and other stakeholders. The programmes
were also conducted deviating from the approved action plan. Audit observed
that DIPRO, though planned 273 pala12 programmes for 273 Gram
Panchayats (GPs), conducted 150 palas in 150 villages under 30 GPs during
February 2011 only as against the requirement of 30 pala per GP. Further,
duration of each pala programme conducted was less than one hour prescribed
Two consecutive pala programmes were conducted by the same person in two
different villages within a time gap of 15 and 30 minutes respectively opening
the way for doubts. Similarly, 10 village meetings were to be organised per
month in 13 Panchayat Samitis (Blocks) consecutively for three months
totalling to 390 meetings against which the DIPRO conducted 150 such
meetings in six blocks only.
The Department stated (January 2014) that efforts were being undertaken to
streamline working of DWSMs and DIPRO in terms of organising various
communication campaigns, periodic review meeting would also ensure
identifying gaps and optimal use of intended IEC funds.
3.1.3.11
Non-utilisation of toilets
As per the design prepared by GoO for sustained use of toilet, the height of the
superstructures of the IHHL was to be six feet and a door was to be fixed.
Examination of records at DWSMs revealed that there were no details as regards
actual use of toilets by the beneficiaries. Therefore, joint inspection was
conducted between November 2012 and June 2013 in which 110 (32 per cent) out
of 344 BPL households interviewed, stated that though they were having toilets
(IHHL), they were not using the same due to various reasons as discussed below:
•
Twenty seven households interviewed stated that they were not using toilets
due to absence of doors and short height of the superstructure of latrines.
•
Sixty three households stated that they were not using toilets due to broken/
damaged and unusable conditions.
•
Fifteen household toilets were not in usable condition due to non-completion.
•
Five households could not specify any reason for not using the toilets.
The Department stated (January 2014) that households were not using toilets as
they were either washed away/ broken/ defunct or not fully constructed. It further
added that the Government has approved conducting a baseline survey to assess
the usage level and identify broken toilets and facilitate financial support to
repair/ reconstruct toilets. Besides, IEC is also to be intensified to mobilise people
for adapting to safe sanitation practices.
12
one type of folk dance basing on cultural values
58
Chapter 3 Compliance Audit
3.1.3.12
Construction of latrines through outside agencies
TSC guidelines prescribe that the toilets should be constructed by the
beneficiaries and upon use by them, Government incentive is to be given. To
facilitate construction of toilets by the beneficiaries, Rural Sanitary Marts (RSMs)
and Production Centres (PCs) were set up and the beneficiaries were required to
procure materials and construct the toilets of their choice as per the design
formulated by GoO in the operational guidelines. Objective of scheme is that
beneficiary should involve himself in construction of toilet so that sustainability
of utilisation of toilets can be ensured.
Audit, however, noticed that instead of payment of incentive to beneficiaries,
` 9.51 crore was paid to NGOs and contractors for construction of 43967
IHHLs13 during 2009-12 in violation of the guidelines. Audit further noticed that
while issuing instruction (January 2011) to all the MSs of DWSMs to create
awareness campaign to encourage people to construct their own toilets, the CE,
OSWSM observed that these NGOs and contractors usually did not consult the
beneficiaries and constructed toilets limiting themselves to the incentive amount.
Such toilets were of very poor quality and not accepted/ used by the households.
The districts which promoted the beneficiaries to construct their own toilets were
of better quality and were being used. The beneficiaries had no knowledge about
the benefits of sanitation or use of the toilets due to lack of adequate motivation.
Department stated (January 2014) that the incentive amount was directly released
to the RSM/ PC only after the toilet was complete and certified by the beneficiary.
Besides, households which are financially capable to construct toilet of their own
get the incentive amount reimbursed from DWSM after due certificate and
verification.
3.1.3.13
Solid and Liquid Waste Management (SLWM)
PRIs were required to put in place mechanisms for garbage collection and
disposal and for preventing water logging. Activities like common compost pits,
low cost drainage, soakage channels/ pits, system for collection, segregation and
disposal of household garbage etc were to be taken up. Audit, however, noticed
that in six out of seven test checked districts, DWSMs did not make adequate
planning for taking up such activities although an amount of ` 15.59 crore was
earmarked for SLWM.
•
13
In three out of seven test checked districts, ` 1.73 crore (11.10 per cent) was
utilised against availability of ` 15.59 crore while no expenditure was
incurred in three districts and percentage of utilisation in three districts ranged
between 0.58 and 15.63. Such low utilisation was due to non-conducting of
different activities prescribed under the SLWM programme. During joint
inspection (May 2013), 104 out of 206 beneficiaries interviewed stated that
Balasore (29771), Kandhamal (3793), Rayagada (10223) and Bargarh (170)
59
Audit Report (G & SS) for the year ended March 2013
there was no disposal system of garbage in their villages as required under
SLWM.
•
In four DWSMs14, IEC action plans
were not prepared during 2009-12
and environmental issues on solid
and liquid waste management were
not addressed. Rural people were to
be made aware of the causes for
outbreak of water-borne diseases
like diarrhea, jaundice etc. due to
pollution of water and environment. Uncleaned dust bin placed for collection and
In four districts, 3.19 lakh rural disposal of garbage in Kumelsingha GP of
people were affected by diarrhea and Bargarh district
jaundice with casualty of 93 lives during 2009-12. Joint inspection also
revealed that dust bin placed in the Kumelsingha GP under Baragarh district
for collection and disposal of household garbage was overflowing creating
unhygienic atmosphere as can be seen from the adjoining photograph.
The Department stated (January 2014) that DWSMs had been instructed to
prepare GP level solid and liquid waste management plan in consultation with
village communities.
3.1.3.14
Lack of fairness and transparency in selection for NGP award
GoI launched (October 2003) the Nirmal Gram Puraskar (NGP) to recognise the
efforts made by PRIs and institutions who have contributed significantly towards
ensuring full sanitation coverage in their areas of operation. To be eligible for
NGP, all households in the PRI area must have access to and all members should
be using individual toilets/ community complexes. GP should have a functional
mechanism for household garbage disposal and drainage system, and cleanliness
should be maintained in the inhabited areas. Application for NGP received from
PRIs at district level should be verified by DWSM and by Internal Scrutiny
Committee (ISC) and State Level Scrutiny Committee (SLSC15) at State level
before the same is recommended and uploaded on the NGP online system of
Department of Drinking Water Supply (DDWS), GoI. DDWS was to conduct a
detailed survey of applications received online through various independent
agencies of repute before selecting GPs for NGP. As per GoI instructions
(January 2009), the second installment of NGP should be paid after six months of
verification of GPs for its sustainability.
Audit scrutiny revealed that out of 572 GPs recommended by the SLSC during
2009-12, only 149 GPs were selected for NGP awards given to GPs during 200911 as under:
14
15
Kalahandi, Kandhamal, Kendrapara,and Rayagada
SLSC: constituted (April 2010) under the Chairmanship of Principal Secretary to Govt., RDD
to scrutinise and recommend NGP proposals from the state.
60
Chapter 3 Compliance Audit
Table 3.3: Showing GPs recommended and selected for NGP
Year
2009
2010
2011
Total
Number of GPs Number of GPs No. of GPs Percentage of GP
recommended
selected
disqualified disqualified
64
20
44
69
235
81
154
65
273
48
225
82
572
149
423
74
Source: Records of OSWSM
Of 149 GPs selected for NGP award during
2000-12, the second installment of ` 1.95 crore
was not released to 133 GPs as of September
2013 by the OSWSM due to non-submission
of verification reports/ UCs by the DWSMs.
No GP was selected for NGP during 2012.
Latrine of a household of Kumelsingha GP
In test checked districts, during joint inspection
of Bargarh district lying unused
of 162 households, it was noticed that in 25
(25 per cent) out of 97 NGP GPs (selected during 2009-11), none of the GPs
fulfilled the eligibility criteria as 42 households in 13 GPs had no toilets and 27
households though had toilets were not using the same due to lack of privacy/
unusable/ broken condition. Thus, the applications were not properly checked at
any level i.e., at ISC, OSWSM and the SLSC to ensure eligibility. As a result, 422
(73.90 per cent) of 571 GPs recommended by the SLSC were disqualified. Joint
inspection of sites also revealed that latrines of NGP awardee GPs were lying
unused as can be seen from the given photograph.
The Department stated (January 2014) that toilets constructed initially were not
permanent in nature and must be broken/ defunct. Baseline survey is to be
undertaken to assess the present sanitation access of rural household and thereby
provide toilets to households without latrines under ensuing programme. The
Department also felt that continuous persuasion is necessary to motivate people to
safe sanitation as households resort to open defecation.
3.1.4
Man power and Monitoring
The programme suffered at various stages of its implementation due to inadequate
man power and monitoring at levels as discussed under:
3.1.4.1 Inadequate manpower for implementation of TSC
As per operational guidelines, the District Project Coordinator (DPC) at each
DWSM is responsible for day-to-day operations and co-ordination with different
agencies involved in implementation of the TSC. The BDOs, as nodal officers at
block level are to be assisted by Block Level TSC Coordinators (BLTC) for
processing programme implementation, providing guidance for development of
GP Plans, collection of information, monitoring progress of implementation and
verifying the construction of Individual Household Latrine (IHHL), school and
AWC toilets etc.
61
Audit Report (G & SS) for the year ended March 2013
Audit noticed that adequate staff was not posted at District and Block levels as
indicated in table below:
Table 3.4: Showing men-in-position of DPCs and BLTCs
State
Name of
PercenRequirMen-inRequipost
Shortfall
tage of
ement
position
rement
shortfall
DPC
30
17
13
43
7
BLTC
314
NIL
314
100
69
Test checked DWSMs
MeninShortfall
position
3
4
NIL
69
Percentage of
shortfall
57
100
Source: Records of CE, OWSM-DWSM
Apart from the above, no designated staff was posted at Gram Panchayat/ village
level to carry out the mission activities. Due to absence of adequate staff at all
levels, micro plans of GPs and blocks could not be prepared and consolidated at
district level for effective implementation of the programme. Besides,
coordination work and other activities of TSC were neglected and the targets
remained largely unachieved.
The Department stated (January 2014) that steps were being taken by the DWSMs
to engage Project Coordinators at the earliest.
3.1.4.2 Review by OSWSM
As per TSC guidelines, the Governing Body (GB) of OSWSM was to meet twice
in a year to review and discuss implementation of TSC under the Chairmanship of
the Chief Secretary, GoO and sort out problems and accelerate progress.
Similarly, the Executive Body was to meet quarterly.
Audit noticed that against six GB meetings to be held during 2009-12, only two
meetings 16 (33 per cent) were held. Target of constructing 16 lakh toilets during
2009-10 and completion of all school toilets was set during its meeting (June
2009). The achievement during 2009-10 was, however, only 4.95 lakh (30.93 per
cent). The GB meeting (March 2012) did not take cognizance of the nonachievement of targets set during its first meeting. Similarly, the Executive Body
meetings were not held during the period. GB meetings were not held regularly on
account of preoccupation of senior officers.
3.1.4.3 Inadequate field inspections by the field functionaries
MS DWSM was responsible for monitoring the programme at district level
through field visits to all blocks to assess the progress of the work, identify gaps,
support in implementation, if required, receive information about the progress,
make random visits to GPs where intervention takes place and assess the quality
of progress. But no such records were made available to Audit.
Department admitted (January 2014) that field monitoring is undertaken by all the
officers and field staff, but field notes and visit reports/ meeting notes were not
16
9th GB meeting on 12 June 2009 and 10th GB meeting on 23 March 2012
62
Chapter 3 Compliance Audit
properly documented. Further, the DWSMs had also been instructed to document
the same properly.
3.1.4.4 Review by team of expert at district level
The DWSMs were to constitute a team of experts in the districts to review the
implementation at least once a quarter. Test check of records in seven test
checked DWSMs17 revealed that the Member Secretaries, did not constitute any
team of experts as a result of which review of implementation of TSC in different
blocks could not be made during 2009-12. Bottlenecks/ hindrances in generating
demands for toilets in the rural areas and causes of low achievement of targets
under the programme could not be analysed and sorted out.
While noting the Audit observation, the Department stated (January 2014) that the
DWSMs would be instructed to form a Team of Experts at district level to assess
the programme once a quarter and submit its suggestion.
3.1.5
Conclusion
Institutional set up for Total Sanitation Campaign (TSC) in Odisha was deficient
as Block Resource Centre, for creating awareness and motivating people for
hygienic habits in GPs/ villages were not set up as per requirement. Expenditure
on the programme was low (38 per cent) and stood as major impediment for
success of TSC in the state. Fund under IEC programme, being an important
component of the programme for success of TSC, was utilised only to the extent
of 12 per cent (` 2.34 crore) of availability. Inadequate and unplanned IEC
activities led to lack of awareness and less creation of demand and the objective
of TSC programme to provide access to toilet to all rural areas by March 2012
remained largely unfulfilled as 85.90 per cent of rural households were not having
latrine facilities. The programme suffered at various stages of its implementation
due to inadequate monitoring at all levels.
3.1.6
Recommendations
•
Adequate institutional set up for carrying out TSC activities may be ensured.
•
IEC activities may be conducted in an interactive environment to create
awareness among the rural people.
•
A robust and effective monitoring mechanism should be put in place to
ensure data reliability and for ensuring implementation of various
components of TSC so as to achieve total sanitation coverage.
17
Balasore, Bargarh, Kalahandi, Kandhamal, Kendrapara, Khordha and.Rayagada
63
Audit Report (G & SS) for the year ended March 2013
RURAL DEVELOPMENT DEPARTMENT
3.2
Functioning of Rural Piped Water Supply Schemes in the State
3.2.1
Introduction
Water is a public good and every person has the right to demand drinking water.
The Government is to ensure that the basic need of the people is met by providing
every rural person with adequate safe water for drinking, cooking and other
domestic basic needs on a sustainable basis. To address the issue, the Government
of India (GoI) launched different schemes to provide safe drinking water by
different means including Rural Piped Water Supply (RPWS) schemes. With
effect from 1st April 2009, GoI launched National Rural Drinking Water
Programme (NRDWP) with a goal to move up the water service delivery system
so that all rural households are provided with adequate piped safe drinking water
supply within the household premises. Rural Development (RD) Department
implemented schemes across all the districts in Odisha and installed 8384 RPWS
schemes in the State as of March 2013.
3.2.1.1 Institutional set up
RD Department headed by the Principal Secretary is responsible for overall
implementation of rural water supply schemes in the State. He is assisted by the
Chief Engineer (CE), Rural Water Supply and Sanitation (RWS&S) as the head of
the organisation, eight Superintending Engineers (SEs) at Circle level and 38
Executive Engineers (EE) at Division level for implementation of water supply
schemes through installation of Tube Wells/ Sanitary Wells/ RPWS schemes. The
State Level Scheme Sanctioning Committee (SLSSC) headed by the Principal
Secretary, RD Department as Chairman, approves the RPWS schemes to be taken
up by the Department.
3.2.1.2 Audit Methodology
Audit was conducted in November/ December 2012 and subsequently during
April-July 2013 covering the period 2009-13. Entry Conference was held with the
Joint Secretary RD Department on 07 March 2013, in which the audit objectives,
criteria, scope and methodology were discussed and agreed to. Audit test checked
records of seven RWS&S Divisions18 out of 38 Divisions selected on stratified
random sampling method based on expenditure. Records of RD Department and
CE (RWS&S) were also checked. Physical inspections were conducted in
presence of the representatives of the EEs. The Audit findings were discussed
with the Deputy Secretary, RD Department in an Exit Conference held on 24
January 2014.
18
Balasore; Bargarh; Kalahandi,
RWS&S Division
Bhawanipatna; Bhubaneswar; Kendrapara; Phulbani; and Rayagada
64
Chapter 3 Compliance Audit
3.2.1.3 Audit objectives
The objectives of the audit were to assess whether:
•
planning for initial identification of RPWS schemes, their commissioning and
maintenance was adequate and effective;
•
defunct/ non-functional and incomplete RPWS schemes were made functional
timely and effectively for supply of safe drinking water on sustainable basis;
•
monitoring and inspection of projects including quality check of water in
RPWS schemes was adequate and effective and projects not conforming to the
standard were declared closed/ defunct and alternative sources provided.
Audit findings
3.2.2
Planning, commissioning and maintenance of Rural Piped Water
Supply schemes
3.2.2.1 Community involvement in planning
As per NRDWP guidelines, Village Water and Sanitation Committee (VWSC) is
to be set up in each Gram Panchayat/ Village/ Ward for implementation of water
supply schemes to ensure active participation of villagers. The VWSC has to
prepare the Village Water Security Plan (VWSP) which would include
demographic, physical features, water sources, available drinking water
infrastructure and other details by dovetailing various funds available at village
level and funds from Rural Water Supply programme. The VWSC has also to
monitor demand/ need, consumer’s satisfaction and provision of drinking water
services available to people on sustainable basis.
Scrutiny of records revealed that the VWSC were not formed despite stipulation
in the Guidelines to have such committee from April 2009. In October 2011,
SLSSC also decided to form such Committee in all existing and ongoing RPWS
village throughout the State. Despite above, only 2906 (25.34 per cent) VWSCs
were formed till date (December 2013) against requirement of 11469 VWSCs
for ongoing/ existing RPWS19 schemes in the State. Due to delay in
formation/ non-formation of VWSC, identification of need based schemes at
village level, community monitoring of progress of works of ongoing schemes,
revival of defunct schemes etc could not be ensured. Audit noticed that 50 RPWS
schemes taken up prior to launching of NRDWP remained ongoing and 175
commissioned RPWS schemes remained defunct till date of audit as discussed in
the succeeding paragraphs.
The Government stated (February 2014) that formation of VWSCs for each
RPWS scheme was under progress.
19
11469=8384 existing + 3085 ongoing
65
Audit Report (G & SS) for the year ended March 2013
3.2.2.2 Inadequate Commissioning of schemes
As per NRDWP guidelines, the VWSP prepared by the VWSC were to be
consolidated at the District and further at State level on the basis of which Annual
Comprehensive Water Security Action Plan (CWSAP) was to be prepared. This
plan would, inter-alia, include tangible targets to be achieved in the financial year
taking into consideration the on-going schemes, new schemes as well as schemes
which require augmentation. While preparing the CWSAP, completion of the
incomplete works should be given priority over new works.
Audit observed that SLSSC approved 7153 RPWS schemes which included 4091
ongoing schemes running prior to NRDWP period and 3062 new schemes
sanctioned during 2009-13. The RD Department, however, fixed a target for
commissioning of 5576 schemes (78 per cent) out of total approved schemes of
which 3348 schemes were completed which accounted only 47 per cent of the
total schemes approved during 2009-13.
Audit further observed that the CE received fund of ` 1745.47 crore under
NRDWP of which ` 1542.86 crore was utilised during 2009-13. However, despite
availability of ` 202.61 crore under NRDWP, commissioning of 2228 schemes
was not achieved.
Department stated that the projects were approved by SLSSC on higher side
targets were fixed keeping in view the provision of funds and attributed
shortfall in utilisation of fund to shortage of adequate manpower. However,
fact remains that even the workable targets fixed by the Department were
achieved.
but
the
the
not
3.2.2.3 Issue of revival of defunct projects not addressed in annual action plan
As per NRDWP guidelines, the SLSSC was to review the progress of completion
and commissioning of the schemes approved earlier and performance of existing
water supply schemes for availability of drinking water to provide 40 litres per
capita per day (LPCD) to all rural habitations.
Audit observed that the issue regarding repair and maintenance of RPWS schemes
and revival of defunct schemes was not included in the Annual Action Plan
approved during 2009-13.
In one SLSSC meeting (April 2011), it was decided to take steps for restoration of
412 RPWS schemes identified as shutdown due to various reasons like nonpayment of electrical dues, non-repair of damaged pipes, failure of water sources,
lack of electrical maintenance etc. by May 2011. But, in subsequent SLSSC
meetings (October 2011), the matter was not addressed nor included in the
Annual Action Plan 2011-13. Due to inaction, 175 RPWS schemes commissioned
at a cost of ` 25.80 crore remained defunct in the State as of August 2013.
The Department stated (February 2014) that due to transfer of RPWS schemes to
GPs for operation and maintenance, this issue was not discussed initially for two
years but discussed by the SLSSC in subsequent years for revival.
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Chapter 3 Compliance Audit
3.2.2.4 Lack of responsibility for Maintenance of projects
In pursuance to decision of Government, all existing RPWS schemes were
transferred to Gram Pachayats (GP) for their management with effect from
October 2006. Operation and Maintenance (O&M) fund under NRDWP together
with the State matching share was to be deposited in a corpus fund linked to each
scheme operated by the concerned GP.
Scrutiny of records revealed that CE, RWS&S, though received ` 95.33 crore
under O&M during 2009-13, neither created corpus fund nor transferred O&M
fund to GPs concerned and utilised ` 84.09 crore towards O&M expenses.
Although RPWS schemes are operated by GPs, CE, RWS&S also was responsible
for its repair and maintenance as fund was received and utilised by the CE.
However, dual responsibility i.e., operation of RPWS schemes by GPs and
maintenance by RWS&S, contributed to 175 RPWS projects lying defunct during
2006-13.
In Exit Conference (January 2014), the Department admitted that no Corpus Fund
was created and maintenance works of RPWS schemes were hampered due to
dual responsibility.
3.2.2.5 Identification of defunct projects
Scrutiny of records of CE, RWS&S revealed that, the CE did not maintain
performance status of the existing commissioned RPWS projects since no
mechanism existed to furnish report regarding non-functioning/ defunct schemes.
Thus, no comprehensive information on regular basis was available at CE or
Division level.
During joint inspection (April 2013) in Bhawanipatna, it was found that the
RPWS scheme at Rishigaon was non-functional since about a year due to
electrical problem but no such information was available in the Division. This
indicated that timely identifications of shutdown/ defunct RPWS scheme was not
conducted for prompt restoration of water supply system.
Department stated (February 2014) that Management information system (MIS)
meeting was being conducted at block and district level once in a fortnight where
functioning of RPWS scheme was discussed and submitted to Government by
district Collector. At CE level, it was discussed once in a month under the
Chairmanship of the Principal Secretary, RD Department in the State level review
meeting.
However, no records relating to discussion on non-functioning/ defunct schemes
could be made available to Audit.
67
Audit Report (G & SS) for the year ended March 2013
3.2.3
Incomplete scheme
3.2.3.1 Lack of prioritisation for incomplete projects in NRDWP
As per NRDWP guidelines, completion of incomplete works shall be given
priority over new works and it should be ensured that works taken up, are
completed as per schedule and there should not be any delay in execution which
would result in non-utilisation of assets created and cost escalation.
Scrutiny of records in four20 out of seven test-checked divisions revealed that in
case of 50 schemes,21 administrative approval was accorded/ work was taken up
at an estimated cost of ` 16.89 crore between March 2006 and February 2009 i.e.,
prior to launching of NRDWP to provide safe drinking water to 0.99 lakh rural
people. But, these schemes remained incomplete as of March 2013 even after a
lapse of three to six years from the dates of their approval/ taking up works
despite expenditure of ` 11.61 crore.
•
In ten schemes though administrative approval for ` 3.29 crore was accorded
between March 2006 and February 2009 for supply of safe drinking water to
0.19 lakh population, no work commenced (March 2013) despite expenditure
of ` 89.31 lakh being incurred on purchase of materials.
•
In 14 projects, distribution pipelines were not laid despite construction of
other component of work worth ` 4.02 crore.
•
Energisation of 11 projects was not done though construction work worth
` 2.56 crore was completed.
•
In 15 projects, water supply was not provided to 28,322 rural population after
incurring expenditure of ` 4.13 crore due to non completion of different
components.
Above schemes were left incomplete due to inadequate monitoring on progress of
works, land dispute, delay in finalisation of source, delay in external
electrification/ energisation, non-synchronisation of various components etc.
Department stated (February 2014) that all efforts were being made for
prioritisation of all incomplete schemes in SLSSC.
3.2.3.2 Lack of synchronisation in commissioning of schemes
Installation of RPWS scheme involves execution of different component of
works, like head-works, raising mains, distribution systems, treatment plants,
overhead/ underground reservoir and external and internal electrification, etc. For
commissioning of a RPWS scheme within the time schedule, simultaneous
20
21
Bargarh: 5, Bhubaneswar:11, Bhawanipatna: 1 and Phulbani:33
Administrative approval accorded: 30 cases and in 20 cases work commenced but administrative
approval not accorded
68
Chapter 3 Compliance Audit
execution of works of all components including execution of external
electrification works was essential.
Scrutiny of records in seven test checked divisions revealed that 191 RPWS
projects were approved by the SLSSC during 2009-12 with an estimated cost of
` 86.87 crore for providing safe drinking water to 4.53 lakh rural people. These
schemes remained incomplete at various stages even after incurring an
expenditure of ` 27.31 crore as of March 2013 due to lack of synchronisation of
different activities and execution of different components of works as discussed in
table below:
Table 3.5: Showing reasons of non functional projects
Sl
Reasons for being non functional
No. of
No
projects
1
Lack of Administrative Approval
09
2
Non completion of electrification of works
17
3
Non completion of distribution system
13
4
Non-execution of work
25
5
Only water source constructed
33
6
Water source not finalised
3
7
Other reasons
91
Total
191
Expenditure
(`
` in crore)
2.73
3.45
3.22
0.77
2.65
0.06
14.43
27.31
People affected
(in lakh)
0.23
0.24
0.28
0.62
1.28
0.10
1.78
4.53
(Source: Records of CE,RWS&S, Odisha)
Further scrutiny of records and physical inspection of sites revealed as under:
•
As per codal22 provision, administrative approval of the Administrative
Department (AD) of Government is essential for execution of any works by
the field offices. In case of exigencies of public service, the Government may
authorise the commencement of work in anticipation of AA for a particular
case, but in such an eventuality, AA should be accorded within three months
from the date of issue of such authorisation. Audit found in RWS&S Division,
Bhawanipatna, Kalahandi that AA was not accorded by the Department for
nine RPWS schemes23 although they were approved by SLSSC and funds
were placed during 2009-13. Out of above nine schemes, external
electrification works were pending in case of five schemes, work not started
in one scheme, pump houses, distribution system and external electrification
remained incomplete in two schemes.
In one case (Barabakhara village in Kalahandi district), consequent on
detection (July 2011) of excess fluoride content ranging from 2.62 mg/ ltr to
4.98 mg/ ltr in existing drinking water sources, the SLSSC approved a new
RPWS scheme during 2011-12 to provide safe drinking water to 0.10 lakh
population. This urgent nature of work is not yet (May 2013) completed
though the source was constructed due to non-availability of AA from the RD
Department and people of the above village continued to consume water from
the existing fluoride content sources.
22
23
OPWD code, Vol-1, Para: 6.1.2 (note)
Status: not energised (2); source completed only (1); OHT not done (1); Incomplete (4); work
not commenced (1)
69
Audit Report (G & SS) for the year ended March 2013
Department stated (February 2014) that delay in administrative approval was
due to finalisation of alternative surface source and the project is going to be
completed by June 2014.
•
During joint physical inspection of a
RPWS scheme (Janged in Bargarh
district) out of the above, it was
noticed that the project taken up
during 2011-12 remained nonfunctional (March 2013) for want of
energisation only. The concerned EE,
Bargarh stated (December 2012) that
electrical authorities had been moved
for providing electrical estimate for
execution of external electrification
works.
Photograph of RPWS at Janged in Bargarh
district which remained non functional due
to non completion of electrification works
•
During joint physical inspection (December 2012), Audit found that RPWS to
Gopinathpur in Khordha district which was administratively approved in
February 2009 was incomplete as of December 2012. Although its source,
headwork and electrification of pump house had been completed with an
expenditure of ` 23.37 lakh but its distribution pipelines had not been laid due
to cement concreting of village road. The problem was not sorted out as of
March 2013. As a result, the objective of providing safe drinking water to 0.02
lakh beneficiaries remained unachieved.
•
During joint physical inspection of the site of RPWS to village Makarsola,
Audit found that the project was incomplete. Over Head Tank, source,
distribution pipeline and stand posts had been completed. The work had been
started one and half year ago as stated by the beneficiaries. Pump house and
external electrification works had not been taken up. The beneficiaries stated
that they were facing difficulties in getting drinking water due to drying up of
existing tube wells and that they were dependent on dug well.
Thus, despite incurring expenditure of
` 27.31 crore, these 191 schemes
remained incomplete and not put to use
since more than one to three years leading
to unfruitful expenditure as well as
delaying the objective of supplying safe
drinking water to 4.53 lakh rural
population.
Department stated (February 2014) that
maximum delay occurred in power supply.
Further, 166 projects had been completed by January 2014.
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Chapter 3 Compliance Audit
3.2.4
Defunct schemes
On scrutiny of records in CE, RWS&S, Audit noticed that 175 RPWS schemes
were defunct/ non-functional as of August 2013 due to non-payment of electrical
dues (nine), non-repair and restoration of damaged pipes (70) and failure to
provide alternative water sources (47), lack of electrical maintenance (47) and
non-completion of alternative source for quality affected schemes closed (two) as
discussed under:
3.2.4.1 Defunct schemes due to non-payment of electrical dues
The decision of the Government (October 2006) stipulates that GPs are to utilise
the 12th/ 13th Finance Commission award for repair/ rejuvenation as well as the
O&M cost for management of RPWS systems under the technical supervision of
RWS&S organisations.
Audit observed that nine RPWS schemes commissioned during 2003-11 turned
non-functional between August 2011 and August 2012 due to non-payment of
electricity dues by the RWS&S Division, Sundargarh. These schemes were not
revived as of August 2013 resulting in stoppage of water supply for 11 months to
23 months affecting 0.10 lakh beneficiaries depending on these schemes for
drinking water.
The Department stated (February 2014) that payment of electricity dues was to be
met from the 13th Finance Commission Allotment, for which fund were available
with the Panchayati Raj Department and the CE, RWS&S has no role except
persuasion with Panchayati Raj Department. The fact, however, remained that the
people were deprived of drinking water due to lack of coordination among
departments.
3.2.4.2 Non-functioning of RPWS schemes due to damage of pipelines
As per instructions of RD Department (April 2010), the Rural Works (RW)
divisions are to intimate the RWS&S Divisions at least 15 days before the
execution of the Pradhan Mantri Gram Sadak Yojana (PMGSY) projects, so that
water supply in rural areas is not disturbed. Adequate care was to be taken to
avoid damage to the existing infrastructure and water supply pipelines for which
proper coordination between the two organisations (RW and RWS&S) was
essential.
Audit noticed that 70 schemes in 15 divisions commissioned between 1991 and
2011 for providing safe drinking water to 94,055 rural people became defunct
between December 2001 and March 2013 due to damage of pipelines, stand posts
etc. during construction/ widening of National Highway (NH)/ Public Works
Department (PWD)/ PMGSY24 roads and remained non-functional as of August
2013.
24
PMGSY Road:13 and PWD/ NH road:57
71
Audit Report (G & SS) for the year ended March 2013
In two of such schemes (RPWS Charbahal and Mahichalla under Bhawanipatna
division), the EE, RWS&S, Bhawanipatna requested (November 2009) the EE,
NH Division, Kesinga to place funds for shifting of pipelines due to construction
of road on NH-201 by NH Division. But, it was not acceded to (December 2009)
on the ground that the former had not taken permission from NH authority before
laying of pipeline on NH roadside. Finally, the schemes became defunct (201011) in course of widening of roads and no other alternative arrangement was made
as of date (May 2013). Interview with the beneficiaries during joint physical
inspection (May 2013) revealed that they were facing difficulties due to
disruption of drinking water supply and were managing with tube wells/ dug
wells.
Department stated (February 2014) that on most of the occasions, the road work
was undertaken prior to notice of the EEs, RWS&S. The pipelines would be
restored after completion of widening of road. This clearly indicated lack of
coordination between line departments of the Government leading to disruption
of water supply.
3.2.4.3 Failure of water sources
Audit noticed that 47 RPWS schemes commissioned at a cost of ` 5.32 crore25
between December 2004 and March 2013 turned defunct between July 2008 and
February 2013 due to failure of water sources affecting water supply to 54,606
rural people. Alternative sources were not provided and the schemes were not
revived due to which water supply remained disrupted for one to more than five
years in 3726 cases.
Out of the above 47 schemes, nine schemes commissioned by RWS&S Division,
Malkangiri between 2005-12 at an expenditure of ` 2.27 crore remained nonfunctional since commissioning due to failure of water sources rendering
expenditure unfruitful.
The Department stated (February 2014) that in case of failure of ground water
source, alternative source (surface) was being provided and all the defunct
schemes would be revived by March 2014.
3.2.4.4 Non-repairing/ replacing of damaged electrical parts
As per the agreement and conditions in “Regulations (48 & 49) of Orissa
Electricity Regulatory Commission Distribution (Condition of Supply) Code
2004” Electricity Supply Companies27 shall maintain installation of substations,
equipment, transformers etc. in good condition and take prompt action to repair or
replace the damaged parts immediately on getting intimation.
Scrutiny of records of CE revealed that 47 projects commissioned during 2002-12
became defunct between May 2008 and February 2013 due to burnt/ breakdown
25
26
27
Expenditure relates to 26 out of 55 projects
Above one year to three years:25, above three years to five years:10, above five years:2
schemes
Four companies
72
Chapter 3 Compliance Audit
of transformers (21), low voltage (six), non-supply of three phase current(10) and
other electrical problems (10) thereby affecting supply of drinking water to 0.59
lakh people.
The CE addressed (November 2012 and February 2013) Chairman-cumManaging Director of the electricity distribution companies to take prompt steps
for restoration of RPWS schemes shut down due to electrical problems. The
Principal Secretary, RD Department also requested (March 2013) the
Commissioner-cum-Secretary, Energy Department to restore power connection to
these schemes and avoid further damage and wastage of public assets.
The Department stated (February 2014) that replacement of damaged electrical
parts was being done by the Electricity Distribution Company as per availability
and the EE, RWS&S Divisions always remained in touch with them.
3.2.4.5 Non revival of schemes declared defunct due to fluoride contents
Check of records of EE, RWS&S Division, Bhubaneswar revealed that RPWS
schemes in Sagargaon and Jaripada in Bolgarh Block of Khordha district
commissioned during 1998-99 with an expenditure of ` 50.58 lakh were closed in
2000 due to detection (January 2000) of excess fluoride content more than the
permissible limit (1.5 mg/ ltr).
Though RD Department accorded AA in January 2007 for renovation of one
scheme (Sagargaon) at a cost of ` 84.87 lakh and to cover 0.11 lakh population
around 10 villages including those villages covered by the above two schemes,
renovation of the scheme was not completed and water supply was not resumed
(March 2013).
Department stated (February 2014) that delay was due to not finding a proper
source and the RPWS scheme would be completed by June 2014. However, the
scheme was sanctioned as long as six years back.
3.2.5
Quality of water
3.2.5.1 Inadequate water quality testing
As per NRDWP guidelines, a Monitoring and Investigation Unit should be set up
at the State headquarter for monitoring the quality of water. All the water supply
sources should be tested at least twice a year for bacteriological contamination
and once a year for chemical contamination.
Scrutiny of records found that such Unit was not set up. In three test checked
Divisions28 periodical testing of water quality of RPWS schemes was not ensured
since testing was conducted only once/ twice during 2009-13. Due to absence of
regular monitoring and testing of water quality, 1.80 lakh people were consuming
unsafe water from 73 RPWS schemes as discussed under:
28
Bhawanipatna, Kendrapara and Phulbani.
73
Audit Report (G & SS) for the year ended March 2013
•
On intimation of audit (May 2013), the EE, RWS&S, Bhawanipatna Division
conducted water quality testing of 137 schemes which were not done since
their commissioning. The test revealed that water of six schemes contained
excess fluoride beyond permissible limit (1.5 mg/ ltr) which ranged between
1.58 mg/ ltr and 1.72 mg/ ltr. These schemes were commissioned during
2007-13 with an expenditure of ` 2.12 crore and allowed 0.15 lakh rural
population to use water without ensuring the prescribed safety norm.
The EEs stated (May/ June 2013) that due to shortage/ inadequacy of
laboratory staff, periodical testing of water quality could not be conducted.
However, the Department stated (February 2014) that all efforts were being
taken to address fluoride affected habitations. However, the fact remained that
the people were still consuming unsafe water.
•
Water of 67 schemes had iron content ranging from 1.18 mg/ ltr to 6.5 mg/ ltr
which was beyond the permissible limit of 1.0 mg/ ltr as per BIS standard.
These schemes were commissioned between 1993-94 and 2012-13 with an
expenditure of ` 17.66 crore to provide safe drinking water to 1.65 lakh rural
population. Though the water of these projects did not conform to the
prescribed standard, they were not declared as defunct and no alternative
measures taken to provide safe source.
•
Test of water samples of 1529 RPWS projects under three test checked
Divisions, collected (April-June 2013) by the representative of EEs in
presence of Audit revealed that iron content of water in a scheme to Keredi
under Phulbani Division, was 3 mg/ltr being excess over the permissible limit
(1mg/ ltr) as per BIS standard/ CPHEO manual. This project was
commissioned during 2008-09 at a cost of ` 12.12 lakh for supplying water to
0.01 lakh rural people.
Department stated (February 2014) that iron removal plant had been installed in
five projects; rain water harvesting structures were to be constructed in other
projects for dilution of water to reduce iron concentration. But the Government
has not brought out any specific proposal to use rain water for dilution of iron
content in RPWS schemes.
3.2.6 Conclusion
Identification of need based RPWS project and their prioritisation was absent in
planning due to non formation of Village Level Water and Sanitation Committee
and non preparation of Village Water Security Plan (VWSP). Due to dual
responsibility i.e., operation of RPWS by PRIs and maintenance by RWS&S,
many projects were lying defunct or non functional for years together. Department
had not taken adequate steps for timely revival of 175 defunct/ non-functional
RPWS projects commissioned at a cost of ` 25.80 crore and completion of 241
29
Phulbani: (1) Dangulu, (2) Keredi, (3) Phiringia (4) Dutipada, (5) Balaskumpa; Bhawanipatna:
(6) Loitara, (7) Kandel, (8) Deygoan, (9) Mandel, (10) Gambhariguda; Rayagada: (11)
Gujalpadu, (12) Lediri, (13) Bujinanga, (14) Muniguda, (15) Jatli.
74
Chapter 3 Compliance Audit
incomplete projects despite expenditure of ` 38.92 crore. Projects after
completion were not functional for want of energisation. Department failed to
take adequate precaution to provide safe water and unsafe water with excess
chemical content from 73 projects was being used by people from RPWS
schemes.
3.2.7 Recommendation
•
The Government may ensure that Village Committees are formed for each
village to identify need based projects, monitor incomplete projects.
•
Chemically contaminated sources must be declared defunct and alternative
sources provided promptly.
FOOD SUPPLIES AND CONSUMER WELFARE DEPARTMENT
3.3
3.3.1
Distribution of Superior Kerosene Oil under Public Distribution
System
Introduction
GoI with the objective to maintain or increase supplies of essential commodities
including petroleum products and to secure their equitable distribution and
availability at fair prices enacted Essential Commodities (EC) Act, 1955. In
exercise of power conferred under Section 3 of the above EC Act, GoI issued
‘The Kerosene (Restriction on Use and Fixation of Ceiling Price) Order 1993 and
Public Distribution System (Control) Order 2001’. In pursuance to above Orders,
the GoI allocates Superior Kerosene Oil (SK Oil) to States for distribution to
beneficiaries at fair prices under Public Distribution System (PDS) for cooking
and illumination purposes. As of March 2013, there were 29,482 Fair Price Shops
(FPSs) under PDS for distribution of SK Oil to 83.98 lakh ration card holders in
the State. SK Oil is supplied through FPS (retailer) who obtains SK Oil as per the
allotment from Sub-wholesaler. These are appointed by Collector and obtain the
allotted quantity of SK Oil from wholesalers appointed by oil manufacturing
companies.
SK Oil was supplied to the card holders at a fair price declared by the respective
District Collectors. The difference between market price and declared fair price is
borne by GoI as subsidy.
3.3.1.1 Scope of Audit and methodology
Audit of distribution of SK Oil under PDS covering the period 2010-13, was
conducted during May 2013 to August 2013 in Food Supplies and Consumer
Welfare (FS&CW) Department and District Civil Supplies Offices of five
75
Audit Report (G & SS) for the year ended March 2013
selected districts30. Besides, records of wholesalers, sub-wholesalers and retailers
of sample districts were also checked. Joint inspection of Fair Price Shops (FPS)
and beneficiary’s interview were conducted by the representatives of the audited
unit in the presence of Audit, wherever required. Audit findings were discussed
with the Commissioner-cum-Secretary of the Department in an exit conference
held on 28 January 2014. The replies of the department have been incorporated in
the report at appropriate places.
Audit findings
3.3.2
Identification of beneficiaries and issue of ration cards
Paragraph 1 of the Annexure to PDS (Control) Order, 2001 issued by GoI and
clause 21 of Orissa PDS (Control) Order, 2008 stipulate that the State
Government should identify beneficiaries under Below Poverty Line (BPL) and
Antyodaya Anna Yojana (AAY) schemes in accordance with the guidelines
issued by GoI. The list of such beneficiaries was to be reviewed every year for the
purpose of exclusion of ineligible beneficiaries and inclusion of eligible ones.
Audit noticed that the enumeration of ration cards was last conducted in 1992.
Government issued ration cards31 to BPL/ AAY beneficiaries based on BPL
survey conducted during 1997-98 and thereafter neither identification nor annual
review of ration card holders was done due to which many eligible beneficiaries
were deprived of ration cards for purchase of SK Oil.
Government stated (January 2014) that there was error in the existing ration card
database. Identification of beneficiaries/ households would be made afresh under
National Food Security Act 2013 which would be mapped with National
Population Register (NPR) data and accordingly new cards would be issued.
3.3.2.1 Detection of bogus ration cards
As per Clauses 2(6) and 2(8) of the Annexure to PDS (Control) Order, 2001, the
Government has to conduct regular review and checking of the ration cards to
weed out fake/ bogus ration cards to prevent diversion of SK Oil under PDS. As
the Department had issued ration cards way back in 1998 based on BPL census
data, it directed (October 2009) all Collectors to conduct intensive review of the
existing ration cards throughout the State to weed out bogus ration cards.
Audit noticed that the Civil Supplies Officers of all five test checked districts,
through a drive undertaken during 2009-11, eliminated 59094 (0.7 per cent) ration
cards32 due to beneficiaries not found during door to door survey etc. Detection of
such bogus cards indicated irregular and non-transparent issue of ration cards. The
30
31
32
Jajpur, Khordha, Koraput, Mayurbhanj and Sambalpur
A document issued under an order or authority of the State Government for purchase of
essential commodities from the FPS
2009-10 - Jajpur : 3365, Khordha: 1377, Koraprut: 4149, Mayurbhanj: 5963, Sambalpur: 4060
2010-11- Jajpur: 4281, Khordha: 15917, Koraput: 512, Mayurbhanj: 8948, Sambalpur: 10522
76
Chapter 3 Compliance Audit
GoI, therefore, called (September 2011, November 2012 and April 2013) for
information regarding actions taken against the delinquent officials responsible
for issue of such bogus ration cards, but no action was taken(August 2013) by the
Department.
Government stated (January 2014) that at the time of identification of
beneficiaries under National Food Security Act (NFSA) 2013, due care would be
taken and regular review would be undertaken thereafter.
3.3.2.2 Non-renewal of ration cards
Clause 22(g) of Orissa PDS (Control) Order, 2008 provides that a ration card
issued shall be valid for five years from the date of its issue till its cancellation.
After five years, the ration card may be renewed or a new one issued. But no such
exercise was made by the Civil Supply Officers (CSOs) for renewal of old or
issue of new ration cards except verification of cards made during 2009-11.
Department stated (January 2014) that actions were being taken for issue of new
ration cards at the time of implementation of NFSA 2013.
3.3.2.3 Non linking of ration card with LPG connection
GoI took a policy decision in 2002 to reduce the allocation of SK Oil to the States
taking into account the number of LPG connections released in each State.
Accordingly, GoI reduced 10829 Kl of SK Oil from the allocation of Odisha
during 2002-04 taking into account 2.26 lakh LPG connections issued in the State
during October 2000 to November 2002. GoI refused (June 2003) to increase
allocation of SK Oil and advised (July 2003) the State Government to launch a
State wide campaign to stamp ration cards of those having LPG connections and
discontinue distribution of kerosene to such card holders.
Audit, however, noticed that the State did not take any such action even after 10
years. As a result, possibility of consumer getting subsidised SK Oil as well as
LPG for cooking purpose cannot be ruled out.
The Department stated (January 2014) that action was being taken to integrate the
database of LPG connections with NPR based on which new ration cards would
be issued under the NFSA 2013.
3.3.3
Allocation and distribution of SK Oil
SK Oil is supplied to FPSs through wholesalers who lift oil from designated oil
company depots and distribute it among its sub-wholesalers and the subwholesalers to retailers FPSs and ultimately from FPSs to beneficiaries.
Irregularities in allocation and distribution of SK Oil are discussed as under:
3.3.3.1 Appointment of sub-wholesalers
Government issued (February/ March 2005) detailed guidelines for appointment
of kerosene sub-wholesalers and retailers under PDS system. Audit observed that
appointments of sub-wholesalers and retailers were made in violation of above
guideline as discussed under:
77
Audit Report (G & SS) for the year ended March 2013
•
As per guidelines, new sub-wholesalers would be appointed only after inviting
applications and copies of such notices are to be displayed in the Municipal/
Block and GPs concerned. But no applications for appointment of nine subwholesalers in three districts33 were invited during 2009-2014. In Koraput
district, appointments were given to six WSHGs/ SHGs, in Jajpur and
Khordha districts the appointments were made in three cases to family
members of the deceased sub-wholesalers on compassionate grounds.
•
Further, any person who is holding another license for dealing in kerosene
should not be granted license as wholesaler/ sub-wholesaler/ retailer for SK
Oil and would not be allowed to renew his license. Collector, Sambalpur and
Jajpur granted (2008-09) wholesaler license to same persons in their
respective district for distribution of SK Oil for two different areas. The
Collectors also did not review the above appointments while granting renewal
of license annually (March 2013).
•
In Koraput district, affidavits regarding non holding of another license, by
them or their family member, from all wholesalers and sub-wholesalers as
required under the guidelines were not obtained at the time of renewal of
licenses.
Department stated (January 2014) that a decision has been taken to abolish subwholesalership from distribution chain of SK Oil. The same has been
implemented in five districts on pilot basis from July 2013. However, fact
remained that the sub-wholesalers were appointed in violation of guidelines.
3.3.3.2 Functioning of fair price shops with less than 500 cards
Wadhwa Committee on PDS recommended (September 2011) that there should
be a minimum of 500 cards attached to a FPS to earn marginal profit. State
Government also issued (February 2011) directions to all Collectors for tagging of
minimum 500 ration cards to each of the FPS under PDS to make them
economically viable. Besides, Clause 9(1) of PDS (Control) Order 2008, interalia, prescribed that the licensing authority may refuse to renew any license if the
expected size of the operations of the dealer is not economically viable.
Audit noticed that as of March 2013 out of 4932 FPSs in the five test checked
districts, 408534 (83 per cent) were running with less than 500 cards of which
1276 FPSs (26 per cent) were operating with less than 200 cards. The SubCollectors, being licensing authorities, appointed or renewed the license in
violation of Government instructions.
Department stated (January 2014) that instructions had been issued (January
2012) to Collectors to follow the criteria of population of 2000 and card strength
of 500 at the time of appointment of FPS. The fact, however, remained that even
after issue of such instructions, 4085 FPSs were running with less than 500 cards.
33
34
Jajpur (1); Khordha (2) and Koraput (6)
211 FPS with less than 100; 1065 FPSs with less than 200, 1295 FPSs with less than 300,
1004 FPSs with less than 400 and 510 FPS with less than 500 cards.
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Chapter 3 Compliance Audit
3.3.3.3
Irregularity in allocation of SK Oil to FPS
As per paragraph 4(5) of Annexure to PDS (Control) Order 2001, while preparing
monthly allocation for FPSs, district office shall take into account balance stock,
if any, lying undistributed with the FPS owners for subsequent allocation.
Similarly, Clause 10 of PDS (Control) Order, 2008 requires that licensees of FPS
shall be responsible to ensure that they receive PDS commodities from
wholesalers as per the quota before the first day of the month so that beneficiaries
get their entitlement from the first day of the month. Audit, however, observed the
following irregularities:
•
Out of 512 FPSs test checked in five districts in 155 test checked FPSs of
Koraput (110) and Sambalpur (45) districts, monthly allocation to FPS was
released without taking into consideration the left over stocks of previous
months by CSOs.
•
In all 512 test checked FPSs of five districts, retailers lifted stocks from
wholesalers/ sub-wholesalers during the second week of each month as the
Department issued allotment order after first week of the month.
Department stated (January 2014) that in most of the months, allocation of SK Oil
was being made to the districts within the first week on receiving State allocation
from GoI, but there is procedural delay in distribution by the district
Administration as well as the OMCs. If any operational delay is noticed, the
matter would be taken up with them to sort out the issues.
3.3.3.4 Excess lifting of SK Oil by sub-wholesalers
Under PDS, prescribed quantity of SK Oil was to be lifted on the basis of the card
strength as directed by District Administration. Audit observed that against
allotment order issued by Collector, Jajpur to issue 50.360 KL of SK Oil to a subwholesaler during November 2011, Marketing Inspector (MI) instructed issue of
51 KL of SK Oil against which wholesaler actually issued 57.080 KL of SK Oil.
This indicated that there was no coordination in issue of orders and wholesaler
issued SK Oil in disregard of orders of the Marketing Inspectors.
Similarly, against monthly allotment order of Collector for issue 16.380 KL of SK
Oil to another sub-wholesaler of Tangi block in Khordha district for the months of
November and December 2010, the MI endorsed lifting of 54.220 KL of SK Oil
based on which wholesaler issued 53.679 KL.
Department stated (January 2014) that reports from the districts had been called
for and instruction was being issued to check these sort of irregularities.
3.3.3.5
Lapse of allotment of SK Oil
GoI while allocating SK Oil for distribution under PDS specifically required that
the entire allocation made for a month should be lifted within the month itself and
carry forward of unlifted quantity would not be allowed. The Department while
reallocating the SKO, instructed the district authorities to lift the entire allotted
quantity every month and ensure that the allotted quantity did not lapse. Further,
79
Audit Report (G & SS) for the year ended March 2013
the wholesalers are to lift 60 per cent of their quota by 10th of the month and 25
per cent by the next week of the month and the remaining by 25th of the month.
Audit observed that entire monthly allotment of SK Oil was not lifted during
2010-13. Due to such non-lifting of the allotted monthly quota by the wholesalers,
372 KL of SK Oil lapsed during 2010-13.
Department stated (January 2014) that Collectors were being asked to review
lifting of SK Oil and take action against wholesalers who failed to lift quota.
3.3.3.6 Diversion of SK Oil for non-card holders and bulk consumers
Paragraph 2 of the allotment orders of GoI requires the States to ensure
availability of subsidised kerosene oil meant for distribution under PDS to the
targeted beneficiaries (BPL/ AAY/ APL categories) for the purpose of cooking
and illumination only and not to be diverted for adulteration or for any
unauthorised use. Besides, GoI instructed (August 2012) the States/ Union
Territories to draw one month’s additional quota of PDS kerosene at nonsubsidised rates during each financial year for special needs. The State
Government in FS&CW Department also instructed (March 2005) the Collectors
to utilise additional quota of kerosene on distribution to non-card holders through
hawkers at haat/ Chhak35 sale. The non-card holders were allowed to purchase
only half litre of SK Oil on haat days. Scrutiny of records revealed that:
•
Collectors/ Sub-Collectors and BDOs of test checked districts diverted
4670.723 KL of SK Oil involving a subsidy of ` 11.98 crore for bulk
consumers and haat sale during 2010-13. The district wise details of diversion
of SK Oil is indicated in the table given below:
Table 3.6: Statement showing district wise diversion of SK Oil
Name
of
district
Koraput
Sambalpur
Jajpur
Khordha
Mayurbhanj
Total
the
Quantity of SKO diverted
(in Kl)
1402.380
259.920
503.555
1159.095
1345.773
4670.723
Amount of GoI subsidy
involved (`
` in crore)
3.62
0.67
1.26
2.95
3.48
11.98
Source: Records of CSOs
•
As subsidised SK Oil is being allocated by GoI for PDS consumers with
specific instructions not to use it for non-PDS purposes, issue of the same to
bulk consumers/ non card holders was irregular and in violation of
Government directives.
•
Further, Collector, Mayurbhanj issued SK Oil to families of non-card holders
ranging from 1.835 litre to 1.941 litre every month against the prescribed
norm of half litre. This was done by reducing the quota of APL beneficiaries
from four litre to three litre per card in rural areas and from four litre to two
35
Local unorganised market in an area
80
Chapter 3 Compliance Audit
litre per card in urban areas which resulted in diversion of 4589.419 KL of
kerosene oil involving a subsidy of ` 12.22 crore during 2010-13 as indicated
in the table below.
Table 3.7:
Statement showing diversion of subsidy on SKO due to sale to non-card
holders
Year
Total quantity of SKO (in All India average
Subsidy
litre)
issued to non-card subsidy rate of
involved
holders
beyond
the SKO (`
` per litre)
( ` in crore)
prescribed norm
2010-11
1175623
18.21
2.14
2011-12
1777368
27.28
4.85
2012-13
1636428
31.98
5.23
Total
4589419
12.22
Source: Records of CSO, Mayurbhanj
•
Out of additional allotment of 24 KL of SK Oil issued (September-October
2011) to Sambalpur district to meet the requirement of flood affected people,
12 KL of SK Oil was diverted by the CSO, Sambalpur for other purposes and
seven KL remained unutilised with the sub-wholesalers of Maneswar Block
(September 2013). Similarly, 12 KL out of the 24 KL of SK Oil allotted
(October 2011) for flood affected people of Jajpur district in addition to the
normal quota was distributed among 10 blocks during March 2012 after five
months of allotment and the balance 12 KL of SK oil was utilised for purposes
other than flood. These are, thus, indicative of poor monitoring over
distribution and utilisation of SK Oil by CSOs.
The Department stated (January 2014) that allocation of SK Oil to the districts
was based on the total number of ration cards in circulation in the district. District
Administration, however, distributed SK Oil to non-card holders and bulk
consumers because they were using it for lighting and cooking purposes. As
regards utilisation of additional allotment of SK Oil made to Sambalpur and
Jajpur districts for flood, report from respective Collectors had been called for.
SK Oil under PDS was meant for card holders and not for bulk consumers or haat
sale; thus, such diversion resulted in reduction of their entitled quota.
3.3.3.7 Undue gain of subsidy by the wholesalers
Department communicated (September 1992) revised uniform rates of leakage
charges payable to SK Oil dealers like wholesalers and sub-wholesalers which
included 1 per cent of the ex-depot price in case of depot delivery towards
leakage.
Audit observed that CSO, Sambalpur allowed leakages ranging from 1.10 per
cent to 1.29 per cent as against admissible leakage of one per cent to three
wholesalers which resulted in an undue gain of subsidy of ` 3.12 lakh36 to them
and less distribution of 13638 litres of SK Oil to beneficiaries.
36
2010-11 (7803 litre x ` 18.21); 2011-12 (3553 litre x ` 27.28); 2012-13 (2282 litre x ` 31.98)
81
Audit Report (G & SS) for the year ended March 2013
Department stated (January 2014) that CSO, Sambalpur had been asked for
reports regarding payment of excess leakage.
3.3.3.8 Irregular payment of transit insurance and bank commission charges
As per instructions (September 1992) of the Department, ` 6 per KL is added to
the sale price of SK Oil towards transit insurance. As such wholesalers and subwholesalers should have proper insurance coverage for SK Oil for transportation
from oil company depot to wholesaler’s depot and from wholesaler’s depot to
sub-wholesalers depot. Similarly each wholesaler and sub-wholesaler is allowed
` 6 per KL towards bank commission. These charges increased the selling price of
PDS SK Oil by ` 24 per KL which is ultimately passed on to the consumers.
Audit, however, noticed that expenditure of ` 52 lakh was reimbursed to 42
wholesalers and 162 sub-wholesalers of five districts without any documents in
support of expenditure actually having been incurred by them.
Department stated (January 2014) that instructions were being issued to all
Collectors to suitably check and supervise the actual transit insurance and bank
commission at the time of fixing the price of SK Oil.
3.3.3.9 Excess payment of barrel depreciation
Clause 12(2) of Orissa PDS (Control) Order, 2008 envisages that dealers holding
license to deal in SK Oil are to keep sufficient number of barrels of 215 litres
capacity each for storing at least 75 per cent of the normal monthly quota.
Wholesalers and sub-wholesalers who deal with SK Oil are provided with ` 30
per KL per month towards cost of barrel depreciation as per GoO orders
(September 1992).
Audit observed that 39 wholesalers and 130 sub-wholesalers did not have
sufficient number of barrels to store 75 per cent of SK Oil as per monthly quota
but paid barrel depreciation charges in full on allotted quota which resulted in
excess payment of ` 56.19 lakh.
Government stated (January 2014) that instructions were being issued to
Collectors to provide barrel depreciation after physical verification of barrels at
the time of fixing the price of SK Oil.
3.3.3.10 Non-maintenance of minimum prescribed “fluid stock reserve”
As per Clause 12(4) of PDS (Control) Order 2008, every wholesaler and subwholesaler dealing in kerosene oil was required to keep reserve stock of 2000
litres and every retailer is required to keep 500 litres which was not to be disposed
off without written permission of licensing authority or an officer not below the
rank of Inspector of Supplies. Audit, however, noticed that in violation of the
above order, wholesalers, sub-wholesalers and retailers of five test checked
districts did not always maintain the minimum prescribed fluid stock reserve for
meeting any unforeseen situations. For example, in Baripada, 33 out of 45 subwholesalers and in Khordha 27 out of 43 sub-wholesalers maintained SK Oil less
reserve than the prescribed limit. In Baripada, 10 sub-wholesalers maintained
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Chapter 3 Compliance Audit
reserves less than 1000 litres throughout 2010-13 with stock position ranging
between 500 and 954.
The Department stated (January 2014) that instructions were being issued for
maintenance of minimum fluid stock reserve at wholesaler and retailer level.
3.3.3.11 Distribution of SK Oil less than the prescribed quantity
As per decision of the Government, each card holder was to be supplied with four
litres of SK Oil per month. Audit, however, noticed that the Collectors issued
orders for supply of SK Oil ranging from two litre to 3.879 litre against the
prescribed quantity of four litre per month. In order to ascertain the actual
quantity of kerosene supplied to the card holders, joint beneficiary interview was
conducted wherein 697 out of 1815 beneficiaries confirmed that they were not
receiving four litre of SK Oil. Thirty-seven beneficiaries stated that they were
receiving less than three litre of SK Oil.
Department stated (January 2014) that GoI had reduced the State quota of SK Oil
every year which resulted in less quantity per ration cardholder quota. Though
GoI was requested for enhancement of State quota to meet the requirement,
favourable response had not been received. However, the fact remains that State
had not taken steps for stamping of ration cards of those having LPG connections
to discontinue issue of SK Oil to these consumers as per instructions of the GoI
which affected adequacy of supply to some extent.
3.3.3.12 Monitoring
Government should ensure the proper procedure for monitoring of the Public
Distribution System including functioning of fair price shops as prescribed in
Clause 8 of the PDS (Control) order, 2001. Audit, however, noticed that:
•
Though regular inspections of FPS were to be conducted not less than once in
six months by designated authority, it was not ensured in Koraput district.
•
Monitoring of functioning of PDS at the FPS level was to be conducted
through computer network of the NIC installed in the district NIC centre and
for this purpose, computerised code is issued to each FPS in the district. But,
in Koraput district, 44 out of 110 FPSs jointly inspected could not report
computerised codes allotted to them although the same were available in
district supply office.
•
Though, monthly allotment order issued by the State Government requires
that CSO monitor lifting of SK Oil by possible dates in a month and report to
Government about the progress of lifting of SK Oil, it was not adequate as
allotment of 372 KL of SK Oil lapsed during 2010-13 as discussed in
Paragraph 3.3.3.5.
Thus, monitoring mechanism put in place for allocation and distribution of SK
Oil under PDS was not adequate and effective.
83
Audit Report (G & SS) for the year ended March 2013
Department stated (January 2014) that suitable instructions were being issued to
district Administration to take up regular inspection.
3.3.4
Conclusion
Government failed to review the lists of beneficiaries annually since 1992 for
purpose of deletion of ineligible families and inclusion of eligible beneficiaries.
During special drive undertaken during 2009-11 by the department, 59,094 ration
cards were detected as ineligible. Due to non-lifting of the entire allotted monthly
quota by wholesalers, 372 KL of SK Oil lapsed during 2010-13. There was
diversion of 9260.142 KL of subsidised SK Oil involving subsidy of ` 24.20 crore
to non PDS beneficiaries. Wholesalers and sub-wholesalers were reimbursed ` 52
lakh towards insurance coverage and bank commission without ensuring its actual
payment. Monitoring mechanism for allocation and distribution of SK oil needed
improvement.
3.3.5
Recommendation:
The Government may
•
ensure review of beneficiary list continuously to provide ration cards to
eligible beneficiaries and strengthen monitoring mechanism accordingly;
•
stop diversion of PDS SK Oil allotted for targeted beneficiaries to bulk
consumers and non card holders.
The Department has agreed to implement the above recommendations after
obtaining orders of Government.
HOME DEPARTMENT
3.4
3.4.1
Security related expenditure
Introduction
Considering the burden on State finances in tackling the security situation caused
by the outbreak of extremism (LWE) in the States, Government of India (GoI)
launched (April 1996) Security Related Expenditure (SRE) scheme, a Centrally
Sponsored Scheme with the objective to supplement efforts of the States in
dealing with LWE problems effectively by way of reimbursing expenditure
incurred by State on security related activities. The scheme was revised (February
2005) comprehensively covering 76 districts of India including nine37 districts of
Odisha. Further, six38 new districts of Odisha were added (April 2008 and April
37
38
Gajapati, Ganjam, Keonjhar, Koraput, Malkanagiri, Mayurbhanja, Nawarangpur, Rayagada
and Sundergarh
Deogarh, Dhenkanal, Jajpur, Kandhamal, Nayagarh and Sambalpur
84
Chapter 3 Compliance Audit
2009) under the scheme. Under the Scheme, 12 areas of expenditure were
identified by the GoI as reimbursable.
Security related activities were undertaken by Home Department at State level
through Director General & Inspector General (DG&IG) of police, Inspector
General (Operation), Special Intelligence Wing and the Superintendents of Police
(SsP) at the district level. Deputy Inspector General (DIG) of police, Special
Intelligence was the nodal officer for controlling and coordinating the expenditure
and for preferring claims for reimbursement from GoI. At the district level, the SP
of the LWE affected district concerned would incur expenditure under SRE after
identifying the villages and individuals eligible for the Scheme.
Audit covered the period 2009-13 and test checked records of Home Department,
DG&IG of Police, the Special Intelligence Wing, the Special Operation Group
and the Odisha Police Housing and Welfare Corporation (OPH&WC) and
selected Superintendent of Police (SP) office at four (Gajapati, Koraput,
Rayagada and Sambalpur) districts on grounds of vulnerability. Audit was
conducted during January-March 2013 with respect to guidelines and instructions
issued by the State and Central Government from time to time with the objectives
to assess whether funds received under SRE were utilised economically and
effectively, compensation and ex-gratia were made properly and timely and
activities were undertaken for implementation of programme commensurate with
objectives of the scheme.
Audit findings
3.4.2
Budgetary control and fund Management
Funds for Security Related Expenditure (SRE) were provided in State budget on
the basis of proposed Annual Action Plan prepared by Home Department and
submitted to GoI for approval. Pending its approval by GoI, expenditure was
incurred through State budget and Department claimed reimbursement under the
Scheme from GoI against expenditure incurred by the Drawing and Disbursing
Officers. The Receipts and expenditure under SRE during 2009-12 were as under:
Table 3.8: Expenditure incurred vis-à-vis Budget provision
Year
Amount
Amount
Budgetary
Variation
proposed in
approved by
Estimates
with
the Annual
MHA for
(BP)
proposed
Action Plan
Annual
Annual
Action Plan
Action Plan
2009-10
39.18
24.23
57.12
(+) 17.94
2010-11
167.95
155.47
125.28
(-) 42.67
2011-12
146.08
86.26
160.44
(+) 14.36
(` in crore)
Actual
Expenditure
Percentage
of
expenditure
over BP
42.33
89.80
72.75
74
72
45
Source: Records of Director General & Inspector General of Police
Audit noticed that the provision of fund in the budget provision assessment was
not in conformity with the Annual Action Plan since variations ranged between
(+) ` 14.36 crore and (-) ` 42.67 crore. Budgetary estimates were not realistic as
expenditure therefrom ranged from 45 to 74 per cent. This indicated that the
provisions made both in AAP and in Budget estimates were unrealistic.
85
Audit Report (G & SS) for the year ended March 2013
Deficiencies noticed in budgetary control and financial management are discussed
as under:
3.4.2.1 Preparation of unrealistic budget and surrender of funds at the fag end
of the financial Year
Rule 46 of Odisha Budget Manual stipulates that the budget estimates for each
year should be as accurate as possible. Further, Rule 146 ibid also envisages that
all anticipated savings are to be surrendered to Government immediately as soon
as foreseen and latest by 10 March of the financial year.
Audit observed that low expenditure resulting in savings of ` 137.9639 crore led
Department to surrender funds on the last working day (31 March) of the financial
year during 2009-12 without any scope for expenditure for SRE purpose. Scrutiny
of records also revealed that though provisions were surrendered due to nonutilisation of funds, additional budget provision for ` 13.91 crore was made in the
supplementary budget for 2011-12 which was also surrendered in full along with
the savings of ` 73.78 crore of the year. This indicated that there was improper
assessment of requirement and management of funds.
Confirming variations in funds between the State budget and the approved Annual
Action Plan, the Home Department stated (November 2013) that the Ministry of
Home Affairs (MHA), GoI restricted the quantum of funds proposed while
approving the Annual Action Plan during or after June every year. However,
when Annual Action Plan was sanctioned during or after June every year, surplus
balances could have been surrendered immediately instead of making additional
supplementary provision and refunding later.
3.4.2.2. Reimbursement of expenditure disallowed by Central Government
As per SRE Guidelines (February 2005), the GoI reimburses expenditure incurred
by the State on SRE under 1240 prescribed items.
Audit scrutiny revealed that Home Department incurred expenditure of ` 204.89
crore under SRE during 2009-12 of which ` 200.41 crore (97 per cent) was
claimed for reimbursement. But, MHA permanently disallowed ` 15.60 crore due
to incurring of expenditure on inadmissible items, as detailed in the table below.
39
40
` 14.79 crore (2009-10), ` 35.48 crore (2010-11) ` 87.69 crore (2011-12)
(1) payment of ex-gratia to the families of civilian/ security personnel killed, (2) transportation,
communication and other logistic support for CPMFs deployed in the State, (3)ammunitions
used by the State Police Personnel for anti-Naxalite activities, (4) Training to the State
Police(5) need based hiring of weapons/ vehicles including helicopters, (6) rehabilitation of
Naxalites (7) strengthening of police Stations/ Out Posts, (8) creation of security related
infrastructure in villages, (9) honorarium to Special Police Officers,(10) preparation of
publicity material for disseminating information about various welfare and developmental
schemes of Government, (11) community policing by the local police (12) premium for
insurance of police personnel engaged in anti-Naxal operations
86
Chapter 3 Compliance Audit
Table 3.9: Expenditure disallowed by Central Government for reimbursement
Sl.
No
1
2
3
4
5
6
7
8
Particulars of expenditure
Cash Payment (beyond ` 20,000)
Hiring of A C vehicles during joint
operation
Use of vehicles for administrative purpose
Idle charges of vehicles paid
Inadmissible materials purchased
Irregular payment of ex-gratia
Other reasons
Expenditure disallowed beyond the
provisions of Annual Action Plan for the
year.
Total
(` in lakh)
Total
2009-10
2010-11
0
0
61.91
1.75
201112
0
2.03
0
0
0
0
0
1406.60
4.02
4.58
3.14
72.00
0
0
0
1.66
0
0
2.48
0
4.02
6.24
3.14
72.00
2.48
1406.60
1406.60
147.40
6.17
1560.17
61.91
3.78
Source: Analysis from audit report of Internal Audit Wing of MHA
Government stated (November 2013) that there was no clear and convincing
Guidelines while applying for reimbursement of expenditure.
However, the fact remains that items of expenditure are specified in the
Guidelines and any discrepancy/ doubts should have been clarified from the MHA
before incurring the expenditure.
3.4.2.3 Inadmissible expenditure on training
SRE guidelines prescribe that expenditure incurred on office equipment/
establishment expenses of the training institute are ineligible items of expenditure
for reimbursement.
Audit observed that office equipment like steel almirah, executive chair, CFL
bulbs, carom board etc., worth ` 5.19 lakh were procured by Special Operation
Group (SOG) deployed to curb naxal activities in violation of the scheme
guidelines.
Commandant, SOG stated (February 2013) that consumable training materials
were procured as per requirement. But, Department did not give specific reason
for violation of guidelines.
3.4.3
Payment of ex-gratia/ compensation
3.4.3.1 Delay in payment of ex-gratia
As per SRE guidelines, in case of death of civilians in extremist violence, the
District Magistrate concerned is required to collect the application and send it to
the General Administration Department for sanction and disbursement of the
quantum of assistance to the next of kin for sanction, at the rate of ` one lakh per
family up to October 2006 and thereafter at the rate of ` two lakh, out of which
` one lakh is reimbursable under SRE scheme.
Scrutiny of 41 cases of ex-gratia payment in two (Koraput and Rayagada) out of
four sampled districts revealed that in 28 (68 per cent) cases, payment of ex-gratia
87
Audit Report (G & SS) for the year ended March 2013
to families was made with delays ranging between 10 months and 28 months. In
two other cases though sanctions were accorded, payment was not made even
after 20 to 27 months from date of death of civilians. In the rest 11 cases,
sanctions were not accorded even after a lapse of 13 months to 42 months from
the date of death of civilians.
Government stated (November 2013) that cases were found to be delayed as wide
coordination is required among different departments/ establishments of
Government. The fact, however, remained that the families of the victims did not
get assistance in time.
3.4.3.2 Delay in payment of rehabilitation package
To wean away misguided youths from LWE and bring them back to mainstream,
the State Government introduced (June 2006) a scheme for surrender and
rehabilitation of extremists which was allowed for reimbursement under SRE.
According to the revised guidelines notified (February 2012) by the Government,
the District Level Screening Committee41 was required to categorise each person
who surrenders as “A” or “B” taking into consideration his/ her involvement in
crime. On surrender, each person was eligible to get four decimal42 of land or its
cash equivalent with effect from 26 August 2009 and the rehabilitation process
was required to be completed within one month. Besides the above, each “A”
category person who surrenders was eligible to get:
•
` 0.50 lakh as immediate cash assistance and
•
` two lakh deposited in Fixed Deposits in the joint account of the surrenderee
and the Nodal Officer (NO)43 of the district, of which ` 0.50 lakh would be
payable after one year and the balance amount after three years subject to
satisfactory conduct of the surrenderee.
Similarly, each “B” category person who surrenders was eligible to get:
•
` 0.50 lakh as immediate cash assistance; and
•
` 0.50 lakh deposited in Fixed Deposits in the joint account of the person who
surrenders and the NO of the district which would be payable after one year
subject to satisfactory conduct of the person who surrenders.
Audit noticed that in three districts (Koraput, Rayagada and Gajapati), there were
nine “A” category and 12 “B” category persons who surrendered but not provided
four decimal of land or its cash equivalent (` 25,000) by the NOs as of March
2013. Besides, all the “A” category persons who surrendered were paid ` 0.40
lakh as immediate cash assistance in lieu of ` 4.50 lakh; and ` 13.20 lakh
41
42
43
Comprising of the District Magistrate, Superintendent of Police, a representative of the
Intelligence Department nominated by the Director, Intelligence, a representative of Central
Armed Police Force (CAPF) where CAPF was deployed
A unit for measurement of land prevalent in Odisha
The Superintendent of Police was the Nodal Officer of the Screening Committee of the district
concerned
88
Chapter 3 Compliance Audit
deposited as fixed deposits in the joint accounts of the persons who surrendered
and the NO, in lieu of ` 18 lakh.
Similarly, 11 out of 12 “B” category persons who surrendered were only paid
` 1.10 lakh as immediate cash assistance in lieu of ` 5.50 lakh. No fixed deposits
were made in favour of “B” category persons who surrendered by the Nodal
Officers even after lapse of more than one year from the date of notification of
revised surrender package.
Thus, there was delay and inadequate payment of rehabilitation package to the
persons who surrendered defeating the objectives of the scheme.
3.4.4
Implementation of Activities
3.4.4.1 Strengthening of Police Stations and providing logistic support to
Central Para-Millitary Forces (CPMFs)
SRE guidelines (Para 16 and 17) stipulated that expenditure incurred for
strengthening police Stations/ Outposts housed in Government buildings and
providing logistic support to CPMFs e.g., construction of defensive and logistic
support temporary structures, barbed wire fencing, etc., required for their efficient
operations are reimbursable. During 2009-12 the DG&IG of Police, Cuttack
sanctioned 45544 such works and released ` 143.24 crore to the OPH&WC for
execution. Status of works as of March 2013 is indicated in the table below.
Table 3.10: Status of execution of SRE works by OSPHWC
Year
2009-10
2010-11
2011-12
Total
No of
works
sanctioned
41
223
191
455
Estimated cost
(`
` in crore)
Completed
28.26
72.27
42.71
143.24
37
159
51
247
Status of work
Incomplete
3
45
75
123
Not
started
1
19
65
85
Source: Records of Odisha Police Housing and Welfare Corporation
Audit observed that there were cases of completed works not handed over to the
user agencies, idling of funds due to non-commencement of works, non-refund of
savings by the executing agency and inadmissible and infructuous expenditure as
discussed below:
3.4.4.2 Non handing over of completed works and non-completion of works
timely resulted in idling of scheme fund
Out of 455 works entrusted to OPH&WC during 2009-12, only 247 (54 per cent)
works were completed utilising ` 56.22 crore. Out of the completed works, 140
(40 per cent) works though completed utilising ` 23.74 crore as of March 2013,
were yet to be handed over to the user agencies due to lack of proper co-
44
310 works under logistic support and 145 works under fortification of police stations
89
Audit Report (G & SS) for the year ended March 2013
ordination between Odisha Police Housing Corporation and the User agencies
concerned.
Similarly, 12345 (27 per cent) works, estimated at ` 48.14 crore, commenced
during 2010-12, utilising ` 27.21 crore, remained incomplete as of March 2013,
though works were stipulated to be completed within three to six months. Delay
in completion of works due to absence of monitoring by the Department resulted
not only in idling of funds but also caused delay in reimbursement of fund from
GoI. Besides, the objective of strengthening of the Police stations remained
unfulfilled.
Government stated (November 2013) that it has always been a difficult task to
timely deliver the matter in adverse conditions and there exist difficulties in
mobilising resources at local level. However, most of the works have been
completed and handed over to user agencies.
3.4.4.3 Arbitrary release of advance resulted in idling of fund
Audit noticed that, all the 85 works sanctioned during 2009-12 under SRE were
pending at different stages as under.
•
23 works not commenced due to non fulfillment of prerequisites e.g., nonselection of sites (11 works), pending approval of deviations/ modifications by
the DG&IG of Police (three works), non-finalisation of tender (nine works);
•
34 works not commenced even after issue of work orders; and
•
28 works though claimed to have been taken up, no expenditure was booked
as of March 2013.
Despite non-fulfillment of pre-requisites and non-commencement of work in
respect of 57 works, DG&IG of Police released the full estimated cost of works of
` 29.79 crore, in favour of the Executing Agency i.e., OPH&WC which
eventually resulted in idling of fund up to three years.
3.4.4.4 Avoidable expenditure of ` 5.31 crore on assets created beyond the
prescribed specification
On provision of logistic support, the MHA clarified (April 2012) that, brick wall
structures would be permissible for construction of barracks etc., under the SRE
scheme for CAPFs camps provided the roof be of temporary nature instead of
Reinforced Cement Concrete (RCC).
45
Three works from 2009-10 and 45 works from 2010-11 and 75 works from 2011-12
90
Chapter 3 Compliance Audit
Audit noticed that in providing logistic
support to the CAPFs, construction of
nine barracks in six46 districts was
taken up under SRE scheme with an
estimated cost of ` 12.64 crore,
against which expenditure of ` 5.27
crore was incurred as of March 2013.
All those works were of permanent
nature since RCC roof was
constructed in each case in violation
of SRE guidelines.
Construction of barrack at CPMF Headquarters,
Koraput with RCC roof
Physical verification of 99 out of 158 works relating to four47 SRE districts
conducted by the Joint/ Deputy Manager, OPH&WC in presence of Audit also
confirmed that in three48 works permanent RCC works were undertaken instead of
temporary roof structures. Similarly,
though a lighting system was installed
at a cost of ` 3.18 lakh and two sentry
posts were created on the roof of the
CPMF camp building at Meghpal Anti
National Police Protection (ANPP) in
Sambalpur district for ` 0.74 lakh, the
assets were lying unusable due to non
provision of electricity and ladder to the
roof. As such, the entire expenditure of
Installation of lighting system at Meghpal ANPP,
` 3.92 lakh incurred under SRE was
Sambalpur without power supply
infructuous.
Government stated (November 2013) that few barracks with RCC roof were taken
up on the demands of CAPF authorities in order to fortify against hostile security
environment.
3.4.4.5 Non-levy and collection of hire charges of helicopter
As per SRE revised (February 2005) guidelines, the expenditure on need based
hiring of helicopters would be reimbursable for being used in anti naxal
operations.
Audit observed that the Home Department hired one Mi-172 helicopter with
effect from 7 August 2011 for providing air support to anti-Naxal operations in
the State. Out of total flying hours of 193 hours and 35 minutes shown as utilised
by the Home Department, actually 143 hours and 55 minutes were utilised for
SRE purposes and the balance 49 hours and 40 minutes were utilised by different
46
47
48
Dhenkanal (1), Keonjhar (3),Koraput (1), Nayagarh (1), Rayagada (2), Sambalpur (1)
Sambalpur, Gajapati, Rayagada and Koraput
(1) Construction of 100 men barrack at CPMF Headquarters, Koraput, (2) Construction of 100
men barrack at Kuchinda, Sambalpur, (3) Additional Infrastructure Officer Transit Mess for
CPMF
91
Audit Report (G & SS) for the year ended March 2013
authorities for non SRE purposes. In respect of utilisation of helicopter for 42
hours and 50 minutes for relief work, the Home Department has intimated (March
2012) that the Special Relief Commissioner, Odisha pay ` 2.46 crore towards hire
charges directly to the service provider. On the remaining flying hours of 6 hours
50 minutes, the cost of hire charges of ` 24.91 lakh was paid out of SRE fund
without getting the amount collected from the user agencies and the same was
also got reimbursed from the GoI.
Government stated (November 2013) that steps were being taken for recovery of
amount from the user department and to adjust the same to the SRE Scheme
2013-14.
3.4.5
Monitoring and supervision
Audit noticed that the Home Department neither constituted any committee to
monitor the implementation of SRE scheme nor fixed any norm of inspection for
State and district level officers. Due to improper monitoring, 140 works could not
be put to use even after their completion at a cost of ` 23.74 crore, 123 works
remained incomplete for more than one year after spending ` 27.21 crore and 57
works with an estimated cost of ` 29.79 crore, though released in favour of the
Executing Agency, were not started even after one year from the date of sanction.
Government stated (November 2013) that it would further streamline the matter
with regard to timely completion of the assigned civil projects under the SRE
Scheme.
3.4.6
Conclusion
Shortcomings in budgetary control, advance release of funds to the executing
agency, delayed payment of rehabilitation package to the persons who
surrendered etc., affected the implementation of SRE Scheme. Further, due to
expenditure on inadmissible items, the GoI disallowed ` 15.60 crore during 200912.
3.4.7
•
•
•
Recommendations
Completion of works under SRE within the stipulated time frame to achieve
the intended objectives may be ensured.
Rehabilitation package may be paid as per rule.
Effective monitoring mechanism may be put in place.
3.5
Assessment and realisation of cost of deployment of police personnel
in other than Government organisations
3.5.1
Introduction
Any private individual or non-Government body requiring the services of police
for special duty to regulate traffic and keep order in or outside private premises on
the occasion of large gathering like football matches, athletic meets, theatrical
92
Chapter 3 Compliance Audit
performance and generally for services which are not within the ordinary duty of
the police, shall be charged the cost of deployment of police guards, at the rates
notified by Government from time to time for which application is required to be
made and fee is to be deposited in advance.
In order to examine the assessment and recovery of cost of deployment of police
personnel in other than Government organisations, Audit examined the records of
Commissioner of Police, i.e. Bhubaneswar-Cuttack City and 13 out of 44
Superintendents of Police (SsP) offices.
Audit findings
Audit noticed that cost of deployment of police guards both in cricket matches as
well as in nationalised banks remained outstanding against the user agencies even
for over one to seven years. Besides, there was also conspicuous absence of any
uniform procedure in assessing the cost of police guards as discussed below:
3.5.2
Non-adoption of uniform procedure for assessing the cost of
deployment
As per Rule 1000 of the Odisha Police Manual, the cost of deployment of police
personnel for private individuals or non-Government bodies consisted of the
average costs of pay and allowances, contribution for leave salary and pension,
cost of fire arms, clothing and equipment charges, probable travelling allowance
at 20 per cent, contingencies at 25 per cent on the amount of pay etc., as
prescribed by the Government from time to time.
Scrutiny revealed that 323 Constables and 70 Havildars were deployed for
maintaining security in 10 nationalised banks in six districts of Odisha during
2006-13. In assessing average cost of pay of the deployed Police personnel the SP
followed different formulae. While four (viz., Gajapati, Kendrapara,
Jagatsinghpur and Angul) SsP adopted an arithmetical average49 of pay method,
other two SsP followed a different50 method. This indicated that no uniform
method of calculation was adopted across the Police Districts of the State.
DG & IG of Police, Odisha, Cuttack instructed (May 2013) all the district SsP to
adopt the calculation procedure uniformly as envisaged below formula No. 4 of
Rule 61 of OGFR and instructed (September 2013) the differential cost of
deployment of police personnel retrospectively from 1 January 2006 be realised.
3.5.3
Outstanding cost of deployment
As per Rule 999 of Orissa Police Manual, the entire cost of police guards was
required to be deposited in advance in cases where deployment was effected for
private individuals and non-Government bodies. Audit noticed that deployment of
police personnel was made without assessing cost of deployment or insisting for
49
50
Formula(4): [(Minimum + Maximum of the pay band)/2] + Grade Pay
Minimum of the pay band + 2/3 (Maximum pay – Minimum pay)
93
Audit Report (G & SS) for the year ended March 2013
its advance deposits in Government Treasuries as required under Police Manual.
Thus, cost of police guards either remained un-realised or realised belatedly as
discussed below:
•
During 2006-13, an amount of ` 14.44 crore was due towards the cost of
deployment of police forces, from 10 user agencies under six districts, of
which ` 10.92 crore was only realised, resulting in non-realisation of ` 3.52
crore as detailed in table below.
Table 3.11: Outstanding cost of deployment of police guards in nationalised banks/ agencies
(` in lakh)
Sl
No
1
2
3
4
5
6
Name of the Name of the User
District
Agency
SBI, Athamalik
Angul
SBI, Samal
OHPC Ltd, Rengali
Bolangir
SBI, Bolangir
SBI,
Gajapati
Paralakhemundi
SBI, Paradip
Jagatsinghpur UBI, Paradip
SBI, Jagatsinghpur
Kendrapara SBI, Kendrapara
Subarnapur SBI, Sonepur
Total
Demand
raised
154.35
154.35
154.35
136.17
154.35
150.16
128.73
128.73
154.35
128.73
1444.27
Actual
realisation
123.28
123.28
123.28
119.55
Amount
outstanding
31.07
31.07
31.07
16.62
110.35
111.42
59.20
93.26
133.98
94.20
1091.80
44.00
38.74
69.53
35.47
20.37
34.53
352.47
(Source: Information received from SsP offices)
The authorities did not take adequate step for realisation despite dues pending
since one to seven51 years. The approach for realisation was confined to issue
of reminders only.
•
In response to the request (February 2010) of Odisha Cricket Association
(OCA) for providing security to players and maintaining law and order for
cricket match, the Commissioner of Police, Bhubaneswar assessed the cost of
deployment of police personnel for ` 59.92 lakh and requested (March 2010)
OCA to deposit the amount in advance. However, without doing so and
attaching any condition against any eventuality of non-payment/ delay in
payment of dues, the Commissioner of Police deployed security. The above
amount was revised to ` 69.14 lakh due to inclusion of ` 2.76 lakh for
enhanced dearness allowance (DA) and service tax ` 6.46 lakh of which only
` 10 lakh was realised (June 2012) as of March 2013 after lapse of two years
leaving the ` 59.1452 lakh unrealised.
In May 2012, wherein the police were deployed for security in cricket match,
at the behest of a franchisee, with an advance payment of ` 10 lakh against the
cost of deployment of ` 39.23 lakh, the department could not realise the
51
52
` 3.52 crore = 2006-07: ` 87.23 lakh, 2007-08: ` 88.57 lakh, 2008-09: ` 95.02, 2009-10:
` 25.23, 2010-11: ` 18.26, 2011-12: ` 29.85, 2012-13: ` 8.31 lakh.
` 59.92 lakh + ` 2.76 lakh (additional demand) + ` 6.46 (Service Tax)- ` 10 lakh
94
Chapter 3 Compliance Audit
balance amount of ` 29.23 lakh. As such, ` 88.37 lakh remained to be realised
from franchise although it was closed.
The DG & IG of Police, Odisha, Cuttack stated (May 2013) that instructions were
issued to Ss P for timely recovery of outstanding dues and the banks/ agencies
were reminded to deposit the outstanding dues. In respect of IPL matches, the
Commissioner of Police, Bhubaneswar–Cuttack, Bhubaneswar stated (October
2013) that a recovery case was registered against the OCA and franchisee.
However, such a situation could have been avoided, had the cost of deployment
been realised in advance from the user agencies as per rule.
3.5.4
Absence of enabling provisions to levy interest/ penalty on delayed/
non-payment of cost of deployment
Audit also noticed that in all cases the deployment of police guards preceded the
realisation of its cost on the ground of urgent necessity of maintaining security.
No intimation/ notice was served to the user agency to deposit the cost within a
reasonable period. Besides, there was no provision in the Act/ Rule/ Police
Manual for protecting the interest of Government in such case of delayed
payment/ non-payment, either by imposing penalty or charging interest for the
period of delay in payment of the cost of such deployment. This ultimately
resulted in delayed/ non-payment of the cost of deployment.
The DG & IG of Police stated (May 2013) that the Government was being moved
for obtaining necessary orders for imposition of penal interest in case of delay in
payment of cost of Police guard.
3.5.5
Conclusion:
Deployment of police personnel without collection of the assessed cost of
deployment in advance resulted in non-realisation of dues. No provision was
made for execution of agreement between user agency and the service provider
with a view to safeguard Government interest in the event of non-payment or
delay in payment of prescribed fees.
REVENUE AND DISASTER MANAGEMENT DEPARTMENT
3.6
3.6.1
Sale and disposal of river sand
Introduction
The Orissa Minor Minerals Concession (OMMC) Rules, 2004 was notified
(August 2004) by the Government of Odisha and empowered Revenue & Disaster
Management (R&DM) Department to grant leases53 and permits54 of quarries of
53
54
A lease granted on tenure basis for extraction, collection and/ or removal of minor minerals
over a compact area.
A permit granted for a period not exceeding one year for extraction, collection and/ or removal
of any specified quantity of minor minerals other than decorative stones not exceeding one
thousand cubic metre.
95
Audit Report (G & SS) for the year ended March 2013
minor minerals including sand or dispose the source through public auction. For
strict enforcement of revenue earning measures and to ensure proactive role of the
filed level officers, Rule 35 stipulates that all sources of minor minerals55
appearing in item No. 1(i) of schedule-III under Rule-2(f) thereof, should be sold
or disposed of by public auction on such terms and conditions as specified by the
competent authority56. As per Rule 37 read with Rule 38 of the OMMC Rules, the
minor mineral sources were to be disposed of through public auction by giving
reasonable publicity and fixing an upset price . Further, as per Rule 56 (xii) the
auction holder is required to keep correct monthly account of minor mineral
quarried and dispatched and furnish monthly as well as annual returns in the
forms prescribed.
Audit of auction of minor minerals (sand) was conducted during January to April
2013 covering the period from 2009-12, of seven57 tahasils, selected on the basis
of highest revenue demand to assess whether all the sources of sand were
identified and their quantity properly assessed, auction of sand source was fair,
levy and collection of auction price was proper and the monitoring mechanism
was effective to check illegal and unauthorised transportation of minor minerals.
For the criteria, Audit relied on the Tahasil Accounts Manual (TAM), Orissa
Minor Mineral Concession (OMMC) Rules 2004 and Orders/ Circulars of the
Government on the disposal of minor mineral sources.
Audit findings
3.6.2
Identification and assessment of sand source
3.6.2.1 Assessment
In order to have an appropriate upset price, quantum of sand in each source
should be assessed before it is put to auction. Audit, however, observed that no
quantity of sand for the source was assessed before it was put to auction.
Registers maintained in Tahsil offices, as per Rule 56 (xii) of the OMMC Rules
2004, though recorded the area of each sand sources, did not contain the quantum
of sand lifted in the previous year. This was due to non-furnishing of monthly/
yearly accounts of minerals quarried and dispatched by the auction holders.
Department also did not insist on proper recording of the quantum of sand lifted.
55
56
57
Ordinary clay, silt, rehmatti, ordinary sand other than the sand used for industrial and
prescribed purposes, brick-earth, ordinary earth, moorum, laterite slabs, ordinary boulders,
road metals including ballasts, chips, bajri and rock fines generated from stone crushers,
gravels of ordinary stones and river shingles and pebbles.
Tahasildar in case the upset price of the source is within ` 50,000 and the Sub-Collector when
it exceeds ` 50,000
Balianta, Barang, Bhubaneswar, Dhenkanal, Jaleswar, Remuna, Talcher
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Chapter 3 Compliance Audit
Due to non-assessment of quantum of sand in source before it was put to auction,
fixation of appropriate upset price could not be ensured. In reply the Tahasildar
stated that assessment of quantity of sand was not feasible as the quantity of sand
deposit depended on flood in the river during rainy season and public auction and
settlement of the sources were finalised well before the commencement of sand
deposit in the sources.
However it was observed that Tahasildar, Balianta imposed (June and August
2012) penalty on the basis of assessment of quantity of sand lifted from Bhargavi
river unauthorisedly.
R&DM Department assured (November 2013) that feasibility of a mechanism to
fix the upper limit of lifting of sand would be examined.
3.6.3
Auction, Levy and Collection
3.6.3.1 Non-execution of auction agreements
As per Rule 53 read with Rule 50 of OMMC Rules, an agreement, containing the
terms & conditions of auction sale, quarrying operations etc., was to be executed
between the successful bidder and the competent authority under the provisions of
the Indian Stamp Act, 1899 within seven days from the date of payment of bid
amount in full, failing which the security deposit was liable to be forfeited, in
whole or in part, by the competent authority.
Scrutiny of 26 out of 100 cases in four Tahasils (Bhubaneswar, Baranga, Talcher
and Jaleswar) revealed that without executing any agreement for quarrying
operation of ` 2.50 crore during 2009-12, the competent authorities allowed the
successful bidders to operate the sources. Due to non-execution of agreement,
stamp duties of ` 12.53 lakh chargeable at the rate of five per cent on the bid
amount could not be realised from the bidders.
The Government stated (November 2013) that the Collectors were advised to
ensure 100 per cent registration of agreements.
3.6.3.2 Award of sand source on negotiation
The OMMC Rules, 2004 vide Rule 41, 42 and 45 permits the bidders to
participate in the process of auction of a minor mineral source, on deposit of
earnest money which is ten per cent of the upset price of the source and the same
is refundable without any interest to the unsuccessful bidders within a reasonable
time not exceeding seven days from the closure of the auction process. Further,
Rule 46 of above rules provided that where the auction price falls short of the
upset price, the competent authority shall refer the matter to the next higher
authority, who may order resale/ re-auction if he is of the view that the price is
lower than what it ought to be.
97
Audit Report (G & SS) for the year ended March 2013
Audit noticed in two (Remuna and Balianta) out of seven Tahsils, as detailed
below, that the auction holders after accepting the offer, did not deposit the bid
value which compelled the authority to settle the bid value at a lower price.
•
Sand source of Nuapur bada sand quarry for 2009-10 under Remuna Tahasil
was put (March 2009) to auction with an upset price of ` 2.31 lakh. Though
nine bidders participated in the open tender process depositing earnest money
of ` 0.23 lakh each, only two of them offered calls for ` 0.49 lakh and ` 0.50
lakh and the other seven bidders remained silent. Since the upset price was not
achieved, the sale was adjourned and the earnest money deposit was refunded
to the bidders by the concerned Tahasildar. But, all the bidders filed a joint
petition praying to fix up the upset price at ` 0.50 lakh which was also turned
down by the Tahasildar. Since the bid could not be settled on four successive
auctions (March and April 2009), the Sub Collector, Balasore negotiated
(April 2009) with 12 participants asking to quote bid price in sealed envelope,
however, no EMD was sought for from the bidders while submitting the bids.
Out of 12, ten participants quoted prices higher than the upset value, the
highest being ` 9.01 lakh. After one hour from the opening of the sealed
cover, nine highest bidders refused to take the source one after the other
without assigning any reason thereof. Denial of the source by the bidders,
after quoting the bid value, forced the Competent Authority to settle the
auction of the source to the lone remaining bidder, who quoted ` 2.39 lakh.
Since there was no EMD available, the bidders participated in the auction and
backed out from the bid without any loss at their end.
•
Similarly, Bhargavi river sand source under Balianta Tahasil for the year
2012-13 was put to auction (March 2013) with an upset price of ` 28.60 lakh.
Though five participants participated in the auction process, the source was
settled at a price of ` 64.77 lakh in favour of highest bidder, who failed to
deposit 25 per cent of the bid value on the date of auction. As such, the bid
was cancelled by the concerned Tahasildar. It was further noticed that all the
subsequent three highest bidders were found absent and they did not turn up at
the call of the Tahasildar. As such, the Tahasildar was forced to settle the
source in favour of the fifth highest bidder of auction at a price of ` 29.65
lakh.
Thus, the auction did not conform to the provisions of OMMC Rules 2004.
Government stated (November 2013) that issue relates to possible cartel
formation and the Steel & Mines Department had been requested to make
provision of registered sealed tender and forfeiture of EMD of participants, if they
quote less than upset price.
3.6.3.3 Award of contract to defaulters of Government dues
Rule 40(c) of OMMC Rules, 2004 prohibits participation of defaulters of
Government dues in the process of auction for minor minerals.
98
Chapter 3 Compliance Audit
Scrutiny revealed that despite pendency of arrear of auction monies and penalties
of ` 10.84 lakh for one to eight years, against seven defaulters of two Tahasils
(Jaleswar and Balianta), they were awarded contract of 10 sand sources during
2009-13. One example is discussed below:
In the auction process of Sekh Sarai sand source (Kha) under Jaleswar Tahasil for
2010-11, Tahasildar Jaleswar permitted one bidder to participate, despite
pendency of auction money of ` 3.13 lakh against him since 2004-05 and source
was awarded at ` 5.70 lakh. The bidder deposited 25 per cent of the bid value
(` 1.43 lakh) and was awarded (March 2010) the source. It was further noticed
that the bidder defaulted in payment of balance amount of ` 4.27 lakh and paid
only ` 3.75 lakh with a delay of 30 months. As a result, ` 3.65 lakh including
previous dues (` 3.13 lakh) remained unrealised from the auction holder as of
March 2013.
As per Rule 65 of the OMMC Rules 2004, if the lessee/ permit holder fails to
make payment of any sum within the due time, simple interest at the rate of 24
per cent per annum on such pending dues shall be charged until payment is made.
So participation of defaulters in the process of auction not only encouraged
bidders to default in payment of Government dues but also resulted in loss of
interest of ` 8.45 lakh to Government calculated at the rate of 24 per cent on the
arrears as of March 2013.
Government stated (November 2013) that Collectors of Balasore and Khordha
were asked to submit proposals for initiation of Departmental proceedings against
the erring officials.
3.6.3.4 Adjustment of security deposit
Rule 50 of OMMC Rules, 2004 stipulates that after realisation of the bid amount
in full from the successful bidder, the earnest money deposit (EMD) is required to
be converted into security deposit, which may be forfeited in whole or part by the
competent authority, in case, any of the conditions of assignment is violated.
•
Audit, however, noticed that during 2009-12, six auction holders of sand
sources in Baranga Tahasil and eight auction holders in Talcher Tahasil
though deposited the bid amount of ` 3.79 crore in full, either did not execute
the agreement with the authority as required under Rule 53 of OMMC Rules,
2004 or did not pay 75 per cent of the bid amount in lump sum within 30 days
from the date of confirmation of the bid. In both cases, though terms and
conditions of auction were violated by auction holders, the Tahasildars,
instead of forfeiting the security deposits either in full or in part, released the
full amount of security deposits of ` 29.80 lakh extending them undue favour.
•
In Jaleswar Tahasil security deposits of ` 7.43 lakh in respect of sixteen cases
were required to be released to auction holders after completion of the
auctionable period. But, within the currency of auction period, the competent
authority unauthorisedly adjusted the security deposits of ` 7.43 lakh towards
99
Audit Report (G & SS) for the year ended March 2013
the arrear bid value pending against the auction holders. Even after adjustment
of the security deposits, ` 23.14 lakh was still outstanding against the auction
holders.
Government stated (November 2013) that Collectors, Balasore and Cuttack had
been asked to submit proposals for initiation of departmental proceedings against
the erring officials.
3.6.3.5 Acceptance of bid amount in instalments
As per Rule 47 of OMMC Rules, 2004, read with Rule 48 and Rule 49 ibid the
successful bidder is required to deposit 25 per cent of the bid amount instantly on
the day, when the bid is finalised/ concluded and the balance 75 per cent in lump
sum within 30 days from the date of confirmation of the bid, failing which, the
confirmation order would be cancelled and amount deposited forfeited by the
competent authorities.
Audit, however, noticed that in 38 cases of four58 Tahasils, the auction holders
were unauthorisedly allowed to deposit 75 per cent of the bid amount in unequated installments without any specification of time leading to delays in
payment ranging between 11 days and two years 10 months. Few instances are
discussed below:
•
Gobarghat Mali Pala sand source under Jaleswar Tahasil was settled (March
2010) through auction at a bid amount of ` 46.48 lakh. Though the auction
holder was required to deposit 25 per cent of the bid value instantly on the
date the bid was confirmed, the auction holder deposited (March.2010)
` 11.21 lakh only as against ` 11.62 lakh, violating the terms of agreement.
Subsequently, the remaining dues of ` 35.27 lakh were deposited in 13
instalments, spreading over 15 months from the date the auction was
confirmed.
•
In 23 cases of Jaleswar Tahasil, payment of 75 per cent of the bid amount was
deposited after lapse of the auction period extending undue favour to the
auction holders. Despite realisation of bid amount in instalments, the
Tahasildars failed to recover the arrears in full and an amount of ` 23.14 lakh
in respect of 10 cases was still outstanding. Allowing payment of auction
amount in instalment resulted in loss of interest of ` 39.23 lakh as of March
2013.
Despite violation in realisation of the bid value, the competent authority neither
cancelled the confirmation order nor forfeited the amount so deposited including
the EMD, rather accepted the bid amounts in un-equated instalments favouring
the auction holders.
Government stated (November 2013) that Collectors, Balasore, Angul, Cuttack
and Khordha had been directed to submit draft charges against the erring officials
for initiation of departmental proceedings against them.
58
Baranga (4), Jaleswar (23), Remuna (2) and Talcher (9)
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Chapter 3 Compliance Audit
3.6.3.6 Disposal of pending certificate cases/ payment of sand dues
As per Section 3 read with Section 4 of the Orissa Public Demand Recovery
(OPDR) Act, 1962 when any public demand payable to any person other than the
Collector is due, such person may send to the Certificate Officer a written
requisition in the prescribed form and the Certificate Officer, on being satisfied,
may cause the certificate to be filed in his office.
Audit noticed that in 48 cases of six59 Tahasils, dues of Government amounting to
` 76.05 lakh relating to sand sources remained unpaid since 1966-67 onwards. Of
the above, though Certificate cases under OPDR Act, 1962 were instituted against
25 defaulters for realisation of ` 35.82 lakh as of March 2012, not a single case
was disposed of and no Government dues were recovered (December 2013).
Neither any review nor monitoring of the pending cases was done by the
Tahasildars/ Sub Collectors for a time-bound disposal. The year wise breakup of
the pending cases is furnished in the table below:
Table 3.12: Year wise break up of certificate cases instituted
Sl No
Year of institution of
No of Certificate
certificate cases
cases instituted
1
2
3
4
5
6
1966- 2000
2001-05
2005-06
2007-08
2008-09
2010-11
Total
10
10
2
1
1
1
25
Amount involved
(`
` in lakh)
6.00
24.02
5.52
0.05
0.08
0.15
35.82
Source: Compiled by Audit from the records of Tahasildars
Similarly, in the remaining 23 cases though Government dues aggregating ` 40.23
lakh remained unrecovered since 1999-2000 onwards; no action was initiated by
the Government for recovery of the same. Details of the pending cases are
furnished below:
Table 3.13: Year wise break up of pending cases
Sl No
1
2
3
4
5
6
7
8
9
10
Year to which relates
No of cases pending
1999-2000
2002-03
2003-04
2004-05
2005-06
2008-09
2009-10
2010-11
2011-12
Not known
Total
1
1
2
1
1
1
1
6
7
2
23
Source: Compiled by Audit from the records of Tahasildars
59
Balianta, Bhubaneswar, Baranga, Dhenkanal, Talcher and Jaleswar
101
Amount involved
(`
` in lakh)
0.27
0.50
0.93
0.03
1.80
0.82
0.50
10.48
24.44
0.46
40.23
Audit Report (G & SS) for the year ended March 2013
Thus, though all the cases were pending for more than one year and were fit for
institution of certificates cases against the defaulters under OPDR Act 1962, no
initiative was taken by the Tahasildars.
Government stated (November 2013) that disposal of Certificate cases are
monitored by the Department from time to time and they are being impressed for
early disposal of cases.
3.6.4
Monitoring
Rule 72 of OMMC Rules 2004 empowers the Competent Authority and the
Director of Mines to enter into and inspect any area, survey and take measurement
in any such workings, examine the registers for weighing and taking measurement
of the stocks of minor minerals lying in any quarry to ensure systematic, scientific
and safe quarrying operations. In case any deficiency is observed as a result of
such inspection, the lessee or the auction holder shall not operate the quarry
unless the deficiencies are made good.
Scrutiny of records revealed that monitoring mechanism was not adequate and
effective as discussed under:
•
As per Rule 68 of the OMMC Rules, 2004, whenever any person is found
involved in illegal extraction or transportation of any minor mineral, he shall
be punishable with simple imprisonment extendable up to two years or with
fine which may extend to ` 25,000 or with both.
Penalty of ` 108.1260 lakh was imposed in 137 cases due to illegal extraction/
transportation of sand, of which only ` 12.09 lakh was collected during 200912 from 136 cases leaving ` 96.03 lakh unrealised. Despite pendency (June
2012) of the amount against one auctioneer in Balianta Tahasil, no step was
taken by the Tahasildar for recovery of the dues. Though illegal extraction
and transportation of sand were noticed, inspections were not conducted
during the above period.
•
Though Tahasildars claimed to undertake monitoring and supervision of the
sand sources during the supervision of the Revenue Inspector offices, no tour
diary, inspection notes/ reports and deficiencies noticed on the quarrying
operations were on record and no follow up action was initiated. The Director
of Mines did not pay any visit or inspect any source during 2009-12. No
internal audit was conducted in any of the seven Tahasils to ensure systematic,
scientific and safe quarrying operations.
This indicated that limited checks and raids were conducted to prevent possible
loss on illegal extraction of sand from the sources and consistent monitoring
mechanism required for improvement.
Government stated (November 2013) that Collectors had been directed to
60
Balianta (25 cases) ` 100.62 lakh, Bhubaneswar (19 cases) ` 2.09 lakh, Dhenkanal (15 cases)
` 1.85 lakh, Talcher (37 cases) ` 0.98 lakh, Remuna (36 cases) ` 2.43 lakh, Jaleswar (5 cases)
` 0.15 lakh
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Chapter 3 Compliance Audit
strengthen the inspection process and maintenance of Inspection Reports by
Tahasildars.
3.6.5
Conclusion
Activities with regard to sale and disposal of river sand were tardy as Government
did not make assessment of the sources, irregularly awarded sources on
negotiation, allowed bidders mining without execution of agreement and
unauthorisedly accepted bid amounts in installments. Though 23 cases (` 40.23
lakh) were pending for more than one year and were fit for institution of
certificates cases against the defaulters under OPDR Act 1962, no initiative was
taken. Further, penalty for ` 96.03 lakh towards illegal extraction and
transportation of sand was not realised though pending since June 2012.
Inspection and monitoring was inadequate.
3.6.6
Recommendation
Government may:
•
assess the quantum of sand to be extracted through scientific methods and
determine the quantum to be auctioned to obtain adequate revenue;
•
ensure registration of agreement with bidder;
•
ensure forfeiture of the earnest money deposit wherever required as per tender
conditions; and
•
prescribe schedule of monitoring and supervision to guard against illegal
quarrying, lifting and transportation of sand.
HOUSING AND URBAN DEVELOPMENT DEPARTMENT
3.7
Payment of dues/ fees in replacement of original challans
Bhubaneswar Development Authority (BDA) collects different types of dues like
application fee, sanction fee, security deposit, compounding fee etc. as prescribed
in the Odisha Development Authorities Rules 1983 and Regulation made there
under. As per procedure, the required dues are deposited through the
quadruplicate challans in different designated banks.
Out of four copies of bank challans, one copy is given to the depositor, one copy
kept by bank and other two copies were sent by the bank to the Accounts Section
of BDA along with scrolls/ statement (i.e. daily collection statement) by the Bank
concerned. The challans received by BDA are verified and codified in Accounts
Section before sending to the Management Information System (MIS) branch for
preparation of Daily Collection Register (DCR) report. After receipt of the DCR
from MIS Branch, vouchers are entered into the Bank Book in Accounts Section.
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Audit Report (G & SS) for the year ended March 2013
The allottees/ applicants after depositing the fees, submit the original/ photocopy
of the challan (depositor’s copy) to the Allotment/Planning Section, as the case
may be, to credit/ adjust the fee in their accounts. In some cases, Allotment
Section and Planning Section send the files along with challans to Accounts
Section for verification of the fees actually paid.
On test check (May 2012) of records of BDA, Audit noticed that after collection
of original challans and scroll from the Bank (BDA Campus Branch) during
February 2008-May 2011, Accounts Section replaced 52 challans of ` 1.11 lakh
with equal number of other challans of ` 11.70 lakh bearing same challan number
and dated bank seal and the amount were credited into the names of 10 allottees
of a Housing Scheme towards payment of their installment though ` 1.11 lakh
was deposited for other purpose by other people. Accordingly, the DCR was also
prepared. Although 52 challans deposited towards different plan approval dues
were replaced, it did not affect the related depositors as their plan approval works
were done in Planning Section on the receipt of depositor’s copy of the challan
without verification of the records of the Accounts Section. In order to keep daily
receipts in DCR tallied with amount shown in Bank Pass Book, equal amount was
reduced from daily receipts of other depositors by replacing original challans.
Audit also noticed that these 10 allottees submitted these replaced challans
(depositor’s copy) of ` 11.70 lakh in Allotment Section as proof of cash deposits
in bank and got their installments adjusted though the same had not been actually
deposited by them.
Though Allotment Section sent challans (depositor’s copies) for verification by
Accounts Section, these replaced challans could not be detected as these were
verified from records (challans, scrolls, DCR) already prepared on the basis of
replaced challans. In the process, BDA sustained loss of ` 11.70 lakh.
Besides, in 44 bank challans (BDA copies), original amount of ` 0.32 lakh
deposited between January 2009 and April 2011 in Bank towards deposit of
required fees (sanction fee, scrutiny fee etc.) were changed to increase the same to
` 1.37 lakh. Thereby the applicant/ depositors could get benefit of ` 1.05 lakh.
Thus, BDA sustained a loss of ` 12.75 lakh (` 11.70 + ` 1.05). Audit intimated
(May 2012) the above case to the State Vigilance Department, who stated
(September 2012) that they have taken up the matter for detailed enquiry and the
result would be intimated in due course. Further, Audit requested the BDA to
conduct detailed verification of all challans to ascertain, if similar transactions
were made.
Government stated (January 2014) that after detection of transaction by Audit,
show-cause notices for cancellation of the allotment of the houses of those 10
allottees had been served and a special audit of the Allotment and Planning
Branch of BDA for the years from 1992-93 to 2012-13 by the Internal Auditor is
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Chapter 3 Compliance Audit
in progress. An amount of ` 11.87 lakh out of ` 12.75 lakh had been realised from
the allottees/ applicants and an in-house inquiry by the Secretary, BDA in
addition to Vigilance inquiry by State Government is under progress (January
2014).
SCHOOL AND MASS EDUCATION DEPARTMENT
3.8
Procurement and distribution of dual desks
3.8.1
Introduction
The School and Mass Education (S&ME) Department has 3518 Government high
schools (April 2008) in the State including taken over high schools and high
schools of Urban Local Bodies (ULB). The Government provided (2008-09) ` 50
crore out of the Twelfth Finance Commission (TFC) grants to enable the S&ME
Department to purchase dual desks for all high schools. The entire amount was
utilised on purchase of 1.67 lakh dual desks supplied to these high schools during
2009-10.
Audit findings
Scrutiny of records relating to procurement of dual desks revealed the following
irregularities:
3.8.2
Non assessment of requirement of dual desks for 3518 high schools.
The S&ME Department instructed (April 2008) the Director Secondary Education
(DSE), Odisha, Bhubaneswar to assess the requirement of dual desk for the
schools and furnish a detailed proposal by 15 April 2008 so that the same would
be procured and distributed. In July 2008, the S&ME Department reminded the
DSE to assess requirement of dual desks and furnish inspector wise list for
Government approval.
Audit noticed that the DSE failed to collect information on requirement of dual
desks from the government high schools before procurement. DSE, Odisha
procured 167002 dual desks during 2009-10 worth ` 50.34 crore without taking
into account requirement of dual desks in tandem with the students strength for
each school. Initially, the S&ME Department intimated (April 2008) DSE that
each dual desk can accommodate two students and on an average at least per 100
students 50 dual desks can be considered for supply to each school. But DSE
clarified (March 2012) that according to availability of funds the dual desks were
supplied (2009-10) to most of the high schools at 23/ 46 desks per school
irrespective of the students’ strength in these schools.
Joint inspection in 60 schools conducted, (February 2013 & May 2013) by audit
in presence of school representatives, revealed that requirement of dual desks
were not assessed before procurement. In one school dual desks were supplied in
105
Audit Report (G & SS) for the year ended March 2013
excess of the requirement and in the balance 59 schools supply was far below the
requirement and varied between five and 92 per cent of student strength of the
schools which indicated unequal distribution. Further, Check of store and stock
records of 101 schools revealed that four schools were supplied with 23 dual
desks while 97 schools were supplied with 46 each.
In reply, the S&ME department stated (August 2013) that as no dual desks were
supplied to the school previously under any scheme, it was decided to supply
equal number of dual desks (23 Nos per school) at the first phase without waiting
for assessment. It was also stated that the DSE had no sufficient time to assess the
actual requirement from the field level.
However, the S&ME Department had specifically instructed (April 2008) the
DSE to assess requirement inspector wise in order to ensure fairness in
distribution.
3.8.3
Improper selection of SSI units for supply of dual desks resulting in
excess payment of transportation expenditure.
As per the recommendation (15 April 2008) of SLPC, orders were to be placed
with local SSI units having EPM rate contract to avoid unnecessary transportation
cost. It was also recommended that in case of non-availability of SSI units in the
same district where schools are situated, orders were to be placed with the SSI
units of nearby district.
The S&ME Department instructed (January 2009) the DSE to procure 50 per cent
of the requirement of dual desk with MDF board from the existing rate contract
holders of dual desk and the balance 50 per cent of dual desk with particle board
from the rate contract holders through OSIC. Further the S&ME Department
instructed (February 2009) the DSE to distribute orders amongst the EPM rate
contract holders proportionately according to their certified capacity. The orders
were to be placed with local/ nearby districts in conformity with the above
recommendation of the SLPC also.
Scrutiny of supply orders given to SSI units by the DSE, Bhubaneswar and OSIC,
Cuttack, revealed that the requirement of dual desks of a particular district,
availability of local SSI units and their production capacity were not considered at
the time of issue of supply order. The Department did not make an attempt to link
the local SSI units and their production capacity with the requirement of desks by
the schools to which the concerned units were to supply desks and issue supply
orders. Some such instances are given below:
•
Though SSI units under Sambalpur district had adequate capacity for
producing 3000 dual desks, 184 dual desks (Particle board) were procured for
eight schools of Sambalpur district from the SSI units of Cuttack district.
•
Similarly, SSI units of Khordha district supplied 92 dual desks to four schools
of Mayurbhanj district although SSI units in Mayurbhanj district had
production capacity for supply of 6000 dual desks.
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Chapter 3 Compliance Audit
Due to non-selection of SSI units for supply of dual desks in the same or nearby
district as per the criteria fixed by government, department procured desks from
distant districts and as such incurred excess expenditure of ` 22.93 lakh on
transportation cost during 2008-10.
The S&ME Department replied (August 2013) that the DSE cancelled the supply
orders of the SSI units failing to supply dual desks and placed orders with
successful SSI units located in distant districts and these arrangements were made
with an intention to utilise the fund before March 2009.
Bhubaneswar
The
(Amar Patnaik)
Accountant General (G&SSA)
Odisha
Countersigned
New Delhi
The
(Shashi Kant Sharma)
Comptroller and Auditor General of India
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